An organization’s budget is often set for the entire year. The internal rents are then allocated to different departments based on templates and registered in the property and facility management system. The costs/internal rents are usually fixed over the year, and when the financial statements are approaching, time-consuming recalculations are often needed to adjust according to the actual outcome.
In reality, changes occur during the year. Departments grow or decrease, move and are remodelled. If the system would automatically generate the correct internal rents each month, it saves you a lot of time. In this article, we discuss several aspects of the benefits of automatic cost allocation in the property system.
Reallocation of costs becomes easier and frequently
When things are easy and quickly managed, the likelihood they will be done increases. Since you need to update changes in the use of an area in the system’s space management, there is an opportunity to save time if you link your space management to your contract management in the IWMS platform. Then the agreements can be automatically recalculated, meaning that the data sent to the financial system can be continuously corrected and consistent with reality.
Secure correct monthly billing, save time and take control
Executing your internal rents billing correctly and continuously throughout the year will save time for everyone in the organization. Giving other departments more valuable time to spend on development and sales. In addition, everyone benefit from easier processes and a real-time view of the situation, enabling a more agile approach by changes of direction and parry fluctuations.
No more time-consuming recalculations before closing
Here is another time saver for organizations that use cost-allocation templates for internal billing. Throughout the year, as financial statements approach, organizations spend a lot of time tracking, reconciling to actuals, and adjusting costs for different departments. This can be avoided with monthly invoicing based on accurate, real-time information.
Better forecast for next year
With a quick and easy budget, forecast and outcome reporting, you not only get good insights but also the opportunity to increase your action, as it helps you make more informed decisions and plan for the future with more confidence.
If you choose to share information with other departments, you allow them to plan their budgets. This could encourag dialogues and participation in optimizing the use of your properties in a more efficient and data-driven way.
Read more about Automated Cost Allocation in Pythagoras here
