Many companies use Web-based software packages to manage budgeting and forecasting functions across the organization. One unique company implementing Web-enabled budgeting is Hendrick Motorsports. Featuring drivers Jimmie Johnson and Dale Earnhardt, Jr., Hendrick is the premier NASCAR Sprint Cup stock car racing organization, with four full-time racing teams that bring in more than $125 million in sponsorship money annually.

The tasks at Hendrick include accounting and marketing to engine building and racecar driving. Hendrick has multiple functional areas and units, varied worksites, and an environment that is ever changing. Hendrick uses Microsoft Forecaster software, a Web-based software package, to allow its financial managers to seamlessly manage the planning and budgeting process.

Authorized users from each functional area or team sign on to the application through the corporate intranet and prepare their budgets online. Managers complete the annual budgeting process in only six weeks, a 50% reduction in the time spent budgeting and planning, which is critical given NASCARs short off-season. Hendricks system frees the finance department to work on strategy, analysis, and decision making.

Security on the system is tight: Access is limited to only the accounts that a manager is authorized to budget. (For example, Dale Earnhardt, Jr.s crew chief is not able to see what Jimmie Johnsons team members are doing.) The software allows users at the racetrack to access the application remotely, enabling managers to receive or update real-time actuals from the system. In this way, team managers know their allotted expenses for each race.

How does the strategic plan influence preparation of the master budget?

How does budgeting provide important information to managers and operating personnel?

Explain how Hendricks Motorsports uses its budgeting system to complete annual budgets and to make major decisions to improve future profitability. Be sure to include the types

of decisions the company might make based on budgets.