Types of Outsourced Budgeting Process

• Sales Budgeting: Companies outsource their sales budget to forecast their sales revenue. Budgeting software helps in better forecasting as a comparison between the past sales and the present can be easily done.
• Production Budgeting: This kind of budgeting entails confirming whether the current production level will meet the current demand. It also involves either increasing or decreasing the production, after analyzing the past and the current trend of demand.
• Capital budgeting: Deals with the valuation of real assets. It is the process of determining whether or not projects such as building a new plant or investing in a long-term venture are worthwhile. Outsourcing capital budgeting process helps to analyze better if a project will be financially viable or not. It helps to know the real and the present value of an fixed/long term asset. It also helps to know what the returns will be like and when the break even will be achieved.