The new approach perfectly illustrates the sense of clarity that delaware has been achieving at Argenta. The whole of cost types perfectly aligns with the accounting system. "It has to be clear whether an expense is related to the bank or the insurance company,” says Christian. “And every cost needs to be linked to a purchase order.” At the same time, the entire budgeting process has been redesigned as well. “The current figures are the starting-point, after which the executive committee defines the desired situation on a macro level. Subsequently, the budget templates are sent to the directors. Their estimates are then sent back to the executive committee to finalize the budget.” After this, the practical budget realization and accompanying follow-up are done to avoid overspending.
On a technical level, the budgeting takes place within IBM Cognos TM1. The templates are adjusted to the feature of the cost types, then aligned with the accounting departments' account system and the order system’s categories. The goal was to make everything as transparent as possible for directors. Accounting at Argenta is done on the Oracle platform. Directors have a license to access the required information. In this way, they get profound insight into current and future costs. It allows them to keep a clear overview while also giving them the level of detail they require.