Sachin Sharma worked with 400 companies and found most budget overruns happen because organizations only catch overspending after the fact. His fix: build budget checks into the purchase order system so each purchase gets validated against available funds before approval.
I worked with close to 400 companies at this time and I can tell you with every single one of them they have expenses going over budget. And number one reason for that is they don't have budget controls that are proactive. They always come to know about those expenses after somebody has spent the money. A simple way to fix that is have a proactive budget control where your purchase order system is actually checking for hey, do I have a budget before somebody makes purchase? So that's what inbuilt budget controls.
