Investaura has developed an Excel-based solution that provides an integrated view combining the short-term forecast (next 24 months) with the long-term business plan (next 5 years). The short-term and the long-term plans are consistent with each other, but can also be used independently.

Planning is not only about the long term, it is also about forecasting what is likely to happen in the short term, usually the next 12-24 months. This is particularly important for a number of reasons:

• for those with revenue responsibility: analyse how sales figures are developing on a month-by-month basis, and how the forecast until the end of the year compares with the budget.
• for the CFO and his team: monitor the cash balance at the end of each month and forecast how the cash position will develop.
• for the company as a whole: monitor financial results month by month, and compare the forecast with the expectations set out in the budget.

The short-term and the long-term plans use the same structure. They can be used in a variety of manners: either in a stand alone manner, or linked to each other, so that the short-term plan takes the first two years of the long-term plan into account: the budget for the current year and the plan for the following year. Vice-versa, the long-term plan is based on the same historical financial data as the short-term plan.

 

The integrated planning tool can be used for any kind of business. Its salient features are as follows:

• both the short-term and the long-term plans are driver-based.
• the short-term plan covers 3 years in months: the previous year with monthly historical data; the current year combining both historical data for the past months and the forecast until the end of the year; and the following year forecast in months.
• the long-term plan covers a period of 10 years: 5 years of historical data, the current year, and the next 4 years.
• the tool includes a commercial model that provides a sales forecast along multiple dimensions: by product line (#1, #2, #3, #4), by product ‘component’ (hardware, software, service), by geography (countries, regions).
• full financial statements including P&L, Cashflow, and Balance Sheet.
• the (monthly) historical data for the current and previous year are extracted from Excel reports generated from the ERP system.
• a cockpit to monitor key financial results and perform variance analysis.
• numerous charts to visualise how the business is performing.
• unusual pattern will stand out and the user of the planning tool can visually cross-check whether the figures shown match his expectations.
• numerous cross-checks to make sure that “no data is forgotten”, and that the short-term and long-term plans are consistent and “tell one and the same story”.

Feel free to contact us for a demo and discussion of your personal challenges and needs.