Budgeting and Forecasting KPIs and Scorecard in Excel Spreadsheet

Budgeting and Forecasting measuring KPI - Balanced Scorecard metrics template example Budgeting is done by estimating values for various financial parameters relating to future financial requirements in all organizational activities. This starts with an estimation of 'sales', covers the 'recruitment needs' to accomplish this, zeroing on the 'appropriate sources of funds' and 'arranging for the repayments of debts, if any'.

Some of the directions in which KPIs can be formed include- Management Perspective, Structural perspective, Continuous Improvement and Learning, and Conformance Perspective.

'Management Perspective' can be assessed using indicators such as 'number of sources and methods used for budgeting and financial forecasting', '% increase in accuracy of forecasting' and 'success ratio'.

'Conformance Perspective' is to know the extent to which it confirms to the required norms. The indicators involved are 'objective fulfillment ratio', '% of employees who agree with the estimations', 'degree of debt- equity alignment' and 'debt coverage index'.

'Structural Perspective' can be known by 'number of supportive elements in the software', 'frequency of budget preparation', 'cross- checking methods' and '% of data that is from the area for which budge is being prepared'.

Continuous improvement and learning can be evaluated via 'usefulness ratio', 'cost decline fraction', '% decrease in time for budget estimations' and '% drop experienced in deviation'.

This helps in using the experience effects that arise from the repeated preparations of budget.

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Funds being the most treasured possession in any company, these has to be handled in the most prudent manner giving attention to all the options for application and sources that are available.

Therefore, Budgeting and forecasting occupies an important place in any organization as wise usage of funds depends on this act. The finance department needs to look out for ways by which they can procure money for materializing their expansion or diversification plans.

Also, estimates are to be made in a number of directions such as the 'prices of raw material', 'selling price', 'manufacturing costs' etc.

By making realistic predictions about the expenses to be incurred, one can avoid the sudden and 'unpleasant surprises' that would often be the case in the absence of any such anticipations.

Earlier this budgeting activity used to be an annual event in most of the organizations but with the ever-rising uncertainty in both the internal and external surroundings, the time lapse between any two consecutive budgets has got sliced considerably.

One can make use of the metrics route to sum up in a 'calculative' manner the past attempts and future course of action.

More useful information for Financial Estimation

Budgeting and Forecasting Evaluation Balanced Scoreboard Screenshots

The Balanced Scorecard (BSC) dashboard indicates performance within each perspective and the total performance of .

This is the actual scorecard with Budgeting and Forecasting Dashboard and performance indicators.

Metrics for Financial Estimation

This is the actual scorecard with Budgeting and Forecasting Dashboard and performance indicators. The performance indicators include: budgeting and forecasting, management perspective, number of sources used for budgeting and financial forecasting, number of methods that have been used for forecasting, success ratio, % increase in accuracy of forecasting, conformance perspective, objective fulfilment ratio, % of employees, who agree with the estimations set, degree of debt: equity ratio conformance, debt coverage index, structural perspective, number of supportive elements in the software, frequency of budget preparation, % of data that is according to the area in which budget is being built, number of cross-checking methods stuffed in the budget, continuous improvement and learning perspective, % decrease in time for budget estimations, cost decline fraction, % drop experienced in deviations, usefulness ratio.

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