A forecast, actual & budget operating model is a spreadsheet financial model that provides the variance between actuals plus forecast, and budget, for the current year.
It also provides a near-term forecast that may extend a further one to four years.
And it plots the results in the format that suits your business.
We call it FABO.
monthly reporting solution
FABO allows you to record and amend actuals, add prior period adjustments and compare actuals plus forecast to budget.
The tool also produces an automatic forecast and reports the results in the format the business is used to.
a bespoke solution
FABO is a bespoke tool designed for the business in question.
Firstly, it is structured to suit the management accounting actuals format. Secondly, the financial statements are in the format of the business. And thirdly, the reporting pack is also tailored to the business.
Improving productivity is key to maintaining a competitive advantage and increasing profits. Using knowledge and know-how from across different industries is one of the drivers of increased productivity.
FABO is a technologically-advanced yet pragmatic way to increase productivity.
FABO is also ...
- A financial model with which to do all monthly reporting
- A model whose reports are constructed to emulate the content and format of your reporting requirement
- A financial model in Excel
- An Excel model written to the FAST standard
- A financial model with detailed operational, finance and financing calculations
- A financial model with profit & loss, cash flow and balance sheet in Excel format
- A model with a monthly periodicity
- A model with a 1, 3 or 5 year timeline
- A model that can contain multiple input & results sets
- A model that can consolidate multiple companies if required
- A model that is simple and clear to understand
- A model that draws actuals directly from enterprise management systems
Do you use Excel in your reporting process?
If you use Excel in your monthly reporting process then you have made the right decision. Here are some possible reasons:
- Flexibility … do it the way your enterprise requires
- Transparency … everyone can look and understand it
- Speed … quickly get to the answers you need in a software you understand
So, is it problem solved?
It looks that way, except everyone knows that the Excel solution definitely degrades a bit over time. It will probably get bigger and more complicated. Moreover, if one individual built the Excel solution, then they should be careful. Why? Because their initial heroic status is seriously at risk as time passes.
Is it likely your Excel solution has errors?
A recent YouGov poll found that more than half of the UK’s finance functions are using Excel in their reporting process. Within these companies that use Excel to report, over 33% have admitted they know they are making poor decisions because of badly constructed spreadsheets. However, the worst finding is that around 20% of UK businesses have suffered direct financial loss because of errors in spreadsheets.
If you are the master of the spreadsheet solution then you should do something about this before you go from hero to zero.
If you are a director or manager, then it is important that you know there are better solutions.
Are there safer ways of coding your Excel reporting solution?
Let us divide the Excel solution into three parts:
- the basic financial statements;
- the subsequent reporting functionality; and
- the specific knowledge of how to properly maintain your solution over time
There are different solutions for the basic engine and for the reporting engine and herein lies part of the secret. The other critical part of the secret is that there are wonderful ways of managing and maintaining the solution over time.
These solutions are tried and tested and are the product of many years of experience.