iStock / dina2001
Industryweek 7435 Obamacare Promo

How to Inoculate Your Budget from the Affordable Care Act

Aug. 7, 2014
For those companies that still don't understand the changes coming from the ObamaCare regulations, technology might offer them some insights.

Despite dominating the financial headlines for several years now, many companies are still not prepared for the changes to the businesses that will result from the Patient Protection and Affordable Care Act (aka ObamaCare). Small companies in particular are struggling to figure out what exactly they're supposed to do. For instance, almost half (46%) of the companies surveyed by Paychex say they don't know what the government expects of them in the way of complying with the new regulations. And it's pretty likely that large companies are having similar problems with compliance, since there's not exactly an ObamaCare for Dummies-style cheatsheet available (at least, not yet).

The complexity of the Affordable Care Act points to the necessity for a budget process that can accommodate and incorporate the myriad changes that can occur when managing a company. As Alan Hart, a former CFO and now a consultant working with solutions provider Centage Corp., explains, "Unless [your] budgeting system is open to modifications without having to perform programming or enter an array of new formulas and links to other worksheets or system modules, these modifications... are unlikely to be made."

According to Hart, one of the biggest areas of concern is payroll-related expenses, especially since companies are going to have to change the way they forecast and incur these expenses. That's going to make it more important than ever that financial executives are able to trust and rely on their software systems to account for all manuyfacturing activities, all internal and external financial reporting, and planning and forecasting. A tall order, indeed.

Hart describes what such a solution might look like:

A capable solution will have dedicated business modules, which are pre-programed sections of the main application and will be equipped with business rules and menu selections and will be ready to quickly implement and put to use. Typical planning/forecasting modules are revenue with cost, operating expenses, capital budgeting, loans and liabilities and of course, a dedicated personnel module.

Learn more about changes to the budgeting process at Business Finance, a companion site of IndustryWeek and part of Penton’s Manufacturing & Supply Chain Group.

Popular Sponsored Recommendations

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

MES vs. Operations Platforms: Buyer's Guide

Sept. 19, 2023
Now more than ever, manufacturers are rethinking legacy MES's role in their operations. This comprehensive guide compares traditional manufacturing execution systems and operations...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Electric Vehicles Spark New Opportunities in the Automotive Industry

Dec. 4, 2023
Automakers have increased plans to produce Electric Vehicles to meet customer demand for low emissions. With this radical shift, new opportunities and challenges for the auto ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!