Remainder of this year's budget
What is it?
The key figure shows how much of the original budget for the current year has not yet been used or spent at the specified time period. It represents the remaining available financial resource that the organization has to work with for the remainder of the year.
This KPI gives a direct indication of how the organization manages its financial resources during the year. If the remaining amount is high, it may indicate that the organization is careful with its spending and is on or under budget. On the other hand, if the remaining amount is low, it may indicate that the organization has already spent a large part of its budget and there may be restrictions on the use of resources for the remainder of the year.
This KPI is useful for planning and making decisions about expenses and investments during the year and to avoid exceeding the budget. It can also be a valuable indicator for assessing how well the organization is staying within its financial limits.
How is it calculated?
Full year budget - Cumulative outcome
* Includes only accumulated outcome up to the end of the selected time period.
Why is it important to follow?
Following the key figure is important for several reasons:
Budget control: It provides the opportunity to actively manage and control the organization's financial expenses during the year. By monitoring the remaining amount, one can avoid overruns and follow the budget closely.
Decision-making: The key figure acts as an important factor in decision-making about new projects, initiatives or expenditures. Decision makers can use the information about the remaining amount to assess whether the organization has sufficient resources to support planned activities.
Resource allocation: It helps prioritize resource allocation for the remainder of the year. The organization can focus on the most critical and strategic areas if the remaining amount is limited.
Risk management: Being aware of the remaining amount makes it possible to identify potential financial risks and take timely measures to manage these risks.
Budget planning: It is useful for planning and adjusting future budgets and financial goals. The organization can take the remaining amount into account when creating new budgets for the following periods.
In summary, the key figure is an important indicator for keeping the organization's financial health and governance on track. It enables better decision-making, financial planning and risk management, and helps to avoid budget overruns and ensure that resources are used efficiently and in line with the organization's goals and priorities.
Created by Homepal
9/15/2023
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