Budget Review And Forecasting: Key Stakeholders, Strategies And KPIs

Key Stakeholders Involved in Budget Review

1As compared to the budget for the year 20×4, the relevant assumptions taken by the company are outlined below.

The budget has been increase by the 1700 units or 26.2%.

Due to the introduction of the trailer model, the sales have been improved comparatively; better and the competitive pricing strategy have been adopted.

The total Australian Market’s moderate growth went up in the year 20X4 and expects the growth achievement with the more paces.

The market trailer increased the revenue by 20%.

There is an increase in overall volume through growth in the Australian Market, yet there is an increase in the price by 4%.

2.Internal stakeholders: the managers and the relevant staff of the department between the organisations. These are the major users of the budget and therefore they rely on the budgets. Also they use the budget and decide in the future objectives and the goals that need to be achieved.
 

External stakeholders: the external stakeholders on the other hand are the suppliers, clients, customers, other key individuals, who are interested by the budgets. These are those classes of people who either provide the products or services or use the same from the company.

3.The current charge out rate and the proposed rate have a difference of 21% and therefore the management shall devise the potential strategies as mentioned below to keep a control on the costs. The charge out rate after the calculation is $160, this is due to the increase in the productive hours. The team shall focus on reducing the commission in the investment department. To review the budget the opportunities that are available for the management are basically to decide the route map through which the company wants to reach in future.

The development of the budget shall be a key element for the organization as it helps in answering the questions like what will be the projected sales, will the margins improve for the company, is the additional capital required or not. Factors that shall be considered while reviewing the budget are presented below

• The consultation from each and every department is necessary. For example sales team will suggest the realistic projections of revenue and the manufacturing team can advise on the cost of the delivery. The sales figure shall be $4032772 but to achieve the breakeven point DS Financial services group shall maintain the units of sales at 25109 units.
• The estimation of the revenues on the basis of the recent growth shall be considered since the sales have a wide impact on the influence of the cost.
• The sources of the revenue are again the critical factor that will help in analysing whether the company have made use of the proper resources and a hybrid mixture of the revenue streams. DS financial services must stabilise the expenses for the investment and financial planning sector
• A regular revision needs to be done due to unforeseen circumstances for the operating and the non-operating expenses. The commission in the investment sector is high at $60000 and the employee’s expenses are comparatively higher in investment sector than information technology.
• To review the budget the external factors such as the economic up-down or the political factors shall also be considered. 

1.The summary of the results is such that gross profit increased by -3.73%, whereas the expenses are less than the budgeted ones. Further the current ratio is less than the budgeted ones ass the current liabilities are more. Moreover the return on investment is also less as compared to the budgeted scenario.

2.The key points to rise are enhancement in the production, inventory turnover ratio and the management of the stock and the efficiency of the company.

3.The method of the forecasting is to cleverly determine the future outcomes which are based on the past events, management insight and also helps in analysing the performance of the company in the market. The forecasting of the 12 months are done to understand the analysis of the fact that whether the trend will continue or not.

4.The KPI needs revision because to communicate the managers effectively and monitor the performance the revision is necessary. The major duties of the staff shall be to understand the key measures and how they are calculated and what positively can be done in order to bring positivity in the organisation. Apart from the other key performance measures are inclusive of the motivation, support, powerful team goals objectives and the vision having he staff employed to build a better future.