Financial Forecasting & Modelling

In order to be in control, any organization should set-up a financial information system. This system would normally begin the company’s strategy, which is consequently translated to a yearly preparation of a budget or target. In our opinion a budget should be based on the expected Key Performance Indicators (KPI’s) or the KPI’s the company is aiming to realize. Through a decent financial model the impact of changes in the KPI’s on the result of the coming years can be determined and monitored. A financial budget model that is properly set-up will therefore also be able to work as a financial forecast tool if the model is updated with the realized KPI’s on a monthly basis. This might work for you as a dashboard or compass and will assist you in actively trying to influence those KPI’s that are most relevant to your business.

A solid financial model might also assist management in the preparation of monthly management reports and will not only include financial information. Financial information on it selves does not provide management with sufficient information necessary to run its business. It are the KPI’s behind the numbers that actually provide management with the information necessary to evaluate the outcome of decisions taken to (further) improve the business.

Financial modeling is also essential within the decision making process of potential investments. The financial outcome within different scenarios can be determined, break-even points can be determined and you will be able to assess if the investment project contributes sufficiently to your operations. The models obtained can also be efficiently included in any business plan used to obtain financing or equity.

We will set-up a user-friendly financial model, based on input of management and other relevant employees and provide your employees with training in order for them to be able to work with the model.