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Budgeting

Budgeting is method of income and expenditure planning for the next period in the context of certain items, organisational units, income and cost centres (each company use specific analytics). Budgeting is done in two steps: preparing the budget and monitoring the budget execution.

KPI MONITOR: Budgeting is a complete solution for automated budget execution monitoring based on interactive presentation of key indicators in the relationship with analytical budget dimensions.

The solution provides:

Formalization of the company's budgets

Budgets of the company constitute a complex system with a pre-defined relationships between financial indicators. For example, the purchasing budget and manufacturing budget are related to the sales budget through sales volume indicator, etc.

KPI MONITOR: Budgeting helps you to organize budgets into coherent system, forming a combined budget of the company / holding company. Solution is provided for the creation of target indicators, reflecting planned values and actual values of budget execution. Budget execution control is achieved by monitoring of the planned-to-actual ratio of performance indicators online.

Бюджетирование
Система бюджетов компании

Unlimited number of analytical dimensions

Budgets of the company are formed in dependence on its size, activities and used in the company planning methodology. In this case, different approaches in budgeting are boils down to binding costs and revenues to different analytical groups. KPI MONITOR: Budgeting supports unlimited number of analytical dimensions and provides opportunities for analysis and execution monitoring in any perspective (profit centre, cost centre, other CFA, goods/services, divisions, branches, period, etc.).

Бюджетирование
Доходы по регионам
Бюджетирование
Продажи по регионам и каналам сбыта

Integration and data import from accounting systems and databases

KPI MONITOR: Budgeting lifecycle involves import of raw data for financial indicators calculation (Budget of income and expenditures, cash flow budget, production budget, etc.). Import can be done from MS SQL Server DBMS, which stores data from budgeting system, and transport files in Microsoft Excel format. At the stage of data import, particular analytics mapping is performed. For example, a list of employees is imported with binding to specific cost centres.

This binding is reflected in the system filter, which makes it possible to restrict the visibility scope of budget execution KPI under various user filters. For instance, financial manager can analyse the performance of certain budget execution in the context of cost centres, that specific employees are responsible for. Described technology of data collection and storage provides a common analytical environment for the company, which essentially makes KPI MONITOR: Budgeting to stand out among other budgeting systems

Calculation of financial indicators of budget execution

Unique advantages of KPI MONITOR program are: possibility of parametric customization and calculation of indicators within the system, rather than in external applications. This calculation is based on user-defined algorithms using formulas and basic indicators that was imported into the system.

For example, calculation of break-even point, which is one of the key indicators of the budget, in the KPI MONITOR is performed by the formula Pbe = R * Cconst / (R-Cvar), where: Pbe - break-even point, R - Revenues from sales Cconst - constant costs Cvar - variable costs).

Бюджетирование
Точка безубыточности
Бюджетирование
Расчет точки безубыточности

Identification of responsible persons for the specific budget execution

Appointing of a particular employee for a specific indicator of a certain budget available in KPI MONITOR: Budgeting increases the efficiency of budget execution.

Бюджетирование
Бюджет расходов
Бюджетирование
Экономия бюджета

Obtaining data for grading systems and motivational programs

A significant impact of budget execution performance on the company's financial health determines the necessity of taking them into account in grading and motivation systems.

Visual representation of the progress and results of budget planning

The program has a web interface, developed on MS Silverlight platform, which provides interactivity and rich graphic display of planned and actual budgeting indicators, consolidated budget and reports. Interactive features of KPI MONITOR:Budgeting includes a dynamic view on the budget execution progress, providing professional with on-line updates of indicator changes, trends, etc. Monitoring panels can be configured for each user, with custom view of indicators this user responsible for (indicator reflecting planned value and deviation, dependant indicators, relevant part of consolidated budget, report in required analytical perspective). This solves the problem of informing decision-makers about the values of budget execution performance, which is especially important for organizations with centralized budgeting. These panels can also be used by business owners, executives and financial managers. For example, the monitoring panel of a head of a major company with many business lines will show only indicators that deviate from the target values..

Бюджетирование
Накладные расходы
Бюджетирование
Анализ запаса финансовой прочности

Detailed analysis of budget execution

The ability to add unlimited number of analytical dimensions, data import and storage technologies, which tie indicator values to these dimensions, as well as interactivity provided by MS Silverlight makes KPI MONITOR: Budgeting a powerful tool for analysis, that allows user to drill down budgeting indicators and interactively refine the data in any analytical perspective. As a result, the effective multidimensional analysis will help management to uncover reasons, dependencies, possible corrections of the budget and to make correct management decisions.