Previously, Davis relied on eight different spreadsheets to develop a new yearly budget. Today, he is off and running with the click of a button. With built-in accounting rules and formula-free calculations, Davis can make changes without the fear of broken formulas and compromised data from year to year. What used to take more than a week now takes merely three days to complete, freeing Davis to focus on more strategic financial objectives.
By copying the original plan to create different scenarios and inputting planned capital expenditures to the forecast, Davis can change assumptions and immediately see the impact on revenue, expenses, and cash flow. Armed with this insight, Davis is empowered to offer key stakeholders valuable context around anticipated business decisions and their impact on the financial health of the organization. For example, by reducing the company’s bank operating line with confidence, Loftness was able to secure a low interest rate and provide an attainable and reasonable target for sales, production, and shipping. Meanwhile, as a result, the bank could lower capital reserves.
Personnel, often the largest expense at any organization, is difficult to manage in archaic and cumbersome spreadsheets. Davis now has visibility into specific wages per employee or department to better understand salaries, taxes, and benefits. This level of visibility provides a much more accurate portrait of wages than a spreadsheet-based process and empowers management to better understand the financial impact of its people. For example, production managers now understand the importance of always staying “right-sized” and that overtime can be more cost effective than hiring more employees. In addition, armed with accurate insight, Loftness has converted to a standard rate per labor hour that serves as a benchmark as production demand rises and falls.
Through ongoing training and support, Centage has consistently offered Davis and his team personalized and dedicated attention to specific business challenges and worked diligently to address key objectives.