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The Yin and Yang of Budgets: Why a Balance of Flexibility and Inflexibility is Vital to Your Business

November 10, 2017

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When selecting a business solution, whether it’s for managing inventory, supply chains or customer relationships, you’ll hear the buzzword “flexibility” thrown around quite a bit as a main value proposition. While I absolutely agree that flexibility is key, when it comes to budget modeling, I would argue that some “inflexible” rules are the only way to ensure true accuracy and compliance.

Let me give you an example: this past summer in Tennessee, the Cheatham County Commission called a special meeting so that the Cheatham County School Board could explain an $878,000 revenue mistake in the school’s budget. The source of the error? A formula in a spreadsheet calculated a subtotal of $439,000 in revenues two times too many.

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