410

JPG

School

TAFE Queensland *

*We aren’t endorsed by this school

Course

MKG414

Subject

Finance

Date

Nov 24, 2024

Type

JPG

Pages

Uploaded by DrHeatAnteater41

Identify three (3) steps used to adjust KPls and ensure an accurate projection of income, expenditure and cash ﬂOW. Explain the benefit of using this step when adjusting exisiting KPis. Step 1: Review and Analyze Histonical Data: The first step is to review and analyze nistorical data related to income, expenditure and cash flow. This analysis will provide insights into the past performance and trends of the organization. By examining the nistonical data, you can identify any discrepancies, seas 'n=l variations, or anomalies that may affect the accuracy of e projections. This step helps you understand the patterns and factors that influence financial outcomes, enabling you to make informed adjustments to the existing KPls 4 Explain the benefit of using this step when adjusting the existing KP!: For example, if the histoncal data shows a consistent increase in expenditure during certain months due to high demand, you may need to adjust the KPls to reflect this seasonality accurately. Similarly, if there are any one-time or exceptionzl income events in the historical data. you can evaluate whether they will repeat in the future and adjust the projections accordingly Y Step 2 Consider External Factors and Market Conditions: The second step is to consider external factors and market conditions that can impact income, expenditure, and cash flow. Factors such as changes in economic conditions, industry trends regulatory policies, and competitor activities can significantly influence financial outcomes. it is essential to stay informed about these external factors and 3ssess their potential impact on your organization 7~ Explain the benefit of using this step when adjusting the existing KPI: By analyzing the externai factors, you can identify potential risks and opportunities that may affect your projections. For instance, if there are upcoming regulatory changes that could impact your industry, you might need to adjust your KPIs to account for the expected impact on income, expenditure, and cash flow. Similarly, if you anticipate increased competition or a shift in customer preferences, you may need to revise your projections accordingly. 4 Step 3: Collaborate with Relevant Stakeholders: The third step is to collaborate with relevant stakeholders within your organization 10 gather insights and perspectives. Involve key individuals such 2s department heads, finance teams, sales and marketing representatives, and operations managers to gain a holistic view of the organization's performance and ons. This collaborative approach ensures that the adjustments to the KPls are based on 2 comprahensive understanding of the organization’s goals and strategies. By engaging stakeholders, you can tap into their expertise and gather valuable input. For example, the sales and marksting team can provide insights into expected revenue generation from upcoming product launches or marketing campaigns. The operations team can provide estimates of cost savings or increased expenditures due to process improvements or capacity expansions. This collaborative process enables you to mzke adjustments to the KPls that align with the collective understanding and objectives of the organization y Explain the benefit of using this step when adjusting the existing KP!: In summary, by following these three steps - reviewing historical data, considerning external factors, and collaborating with stakeholders - you can adjust existing KPls to ensure accurate projections of income, expenditure, and cash flow. This process allows you to incorporate past performance, anticipate future changes, and leverage internal expertise to make informed adjustments that reflect the evolving financial landscape of your organization 4

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