Projections for 2019, Forecasts and Data Collection : how’s it going at your business
A little note inspired by a recent discussion with a friend who’s a financial officer for a retail group. When I asked the usual question: “How are you? How’s work?” His answer seemed a bit terse: “This is always a really busy time! Between my monthly budget closing and the 2019 plan already coming up, I’m spending my nights at the office! But it’s like that every year. I’m ready!”
It’s true that the end of Q2 is definitely the busiest time of the year for all you treasurers and CFOs.
Right now, your business expertise – which should be put to work on doing analyses, proposing action plans, and arguing for your preferred approach – may be bogged down in constructing tables, collecting data and entering it in multiple places, and juggling files… so many files…
What if there were a way to simplify your life ?
Turn these three months of “pre-budget burnout” into an exciting and challenging period when you can think, discuss and decide.
Automate your calculations !
We’ve all been there: after hours of configuring formulas and macros across multiple tabs, you start the calculations… and all you get back is #N/A. Where’s the error? Which tab? Which specific cell is my calculation attached to?
Scrap the spreadsheet !
Most experts’ number one nightmare is repeatedly manipulating large values of data from multiple sources of data from sources scattered across the company. They end up spending colossal amounts of time on collecting, assembling and managing data, which ultimately leaves little room for analysing the current situation or preparing forecasts. Excel is flexible, but counter-productive: it leads to the creation and maintenance of complex, fragile models.
Set aside these uncertain and time-consuming methods, and you’ll get more reliable results while also saving time.
Refresh your data !
Your forecasts incorporate lots of different data from multiple departments (accounting, controlling, HR, tax services, …). How can you aggregate them while still making sure they’re up to date? How many internal reminders do you have to send out to get the data from those same few people who are always late? Regular manual data collection is often such a tedious chore that it simply gets put off. But how can you prepare projections if you’re working with obsolete figures? If your actual sales have fallen short of the forecasts provided several months ago? If your buyers have had to shorten their settlement periods?
Preparing projections based on incorrect figures could be very costly…
Master your data and state your case with confidence
To make the right financial decisions, you need to have a clear view of your group’s projected cash on hand.
Are you able to isolate intra-group flows? Can you analyse the cash contribution of each client and each project? Do you know the WCR impact of getting customer receipts one day sooner for the next quarter? Do you simulate your projected date precisely in cases of acquisitions or divestments? Are your tables and analyses clear and easily viewed in detail?
If so, your Executive Committee and your partners will trust your figures and you’ll have complete credibility when you state your case.
NO! The budget period doesn’t need to be an impossible puzzle or an endless series of time-consuming tasks.
Switch to a professional modelling and management solution for your cash flow, balance sheet and WCR forecasts – with CASHSOLVE.
Request a demo to improve your performance and your added value !
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