What Business Leaders are Doing Now Versus
What They Need to be Doing
Empower Your Business with Planning Maestro
Common Challenges During Sluggish Economy
How Planning Maestro Can Help
Small and mid-size businesses are often the first ones to be hit, and often hit the hardest, during “tough and uncertain times”. The ability for a company to develop an insightful, strategic, and accurate cash flow budget or forecast allows you to manage scarce resources effectively, as well as provide investors with greater insight.
With less cash to count on, knowing your cash flow position has never been more important: how much is really in the bank, how much is available on short notice, what revenues are coming in when, and what resources are going out and when. Managing your cash flow as tightly as possible is perhaps the most important tool you have to withstand the down economy and come out on the other side intact and poised for growth.
Many small and midsize businesses operate on a low profit margin and, therefore, become very sensitive to any market fluctuations. Even during times of immense growth, your employees are often your biggest expense. Forecasting workforce expenses accordingly will help prepare your business for even the worst market conditions.
All companies strive for growth and earnings, no matter what market conditions look like. It is known that three-quarters of companies will experience a revenue decline during a recession, yet 14% actually experience revenue and profitability growth.
Companies that remain strong during uncertain times are often those that have the ability to forecast with accuracy, pivot budgets easily, and analyze how to reduce costs using robust what-if scenario planning.
For most small to medium sized companies the management of cash inflows and outflows is critical. Your company may have limited resources for borrowing capital quickly. An accurate cash flow statement developed during the plan or forecast process can serve as an alert mechanism for any future problems caused by an unfavorable cash position.
Why Accurate Cash Flow Insights Matter More During Times of Uncertainty
Download our white paper, Making the Big Shift: Transitioning from Growth to Capital Efficiency, to learn how an insightful, strategic, and accurate cash flow budget will allow you to manage scarce resources effectively.
Trusted By More Than 10,000 Users
“We used Planning Maestro to do some worst-case scenario planning, such as losing 50% of our revenue and planned hours. It was a huge benefit to forecast the impact on our revenue. We were fortunate that our worst-case scenario didn’t come to pass, but it was still helpful to know what it would look like so that we could plan ahead.”
Your Cash-Flow Forecasting Options
Advantages or Limitations
- Inherent spreadsheet limitations do not effectively support planning or forecasting of cash flow
- Difficult to develop and maintain versions, dynamic financial statement links, and what-if analysis
- Most ERP systems do not support best-in-class planning and forecast modules
- Inflexible cash flow functionality
- Implementation and modeling efforts can be costly
- Business Performance Management (BPM) solutions can be very expensive, often more than $100,000, requires significant IT support and may take up to years to implement.
- Difficult to find a solution that offers inherent dynamic links between financial statements
Cash Flow Point Solutions
- Cash flow point solutions will usually offer robust functionality for creating effective cash flow models but are not integrated planning & forecasting applications. As a result, there is a disconnect between the operational and high-level planning activities that companies need to prepare a realistic cash flow projection.
- Insight and visibility into the underlying components of cash flow reporting is difficult to maintain
- Support for purpose-built cash flow reporting and analysis planning capabilities
- Minimal implementation costs with out-the-box cash flow statements
- Support for automatic, dynamic links between key financial statements (income statement, balance sheet, and cash flow)
- Support for cash flow versioning and what-if analysis
- Drill-down capabilities to provide visibility to underlying cash flow components
- Dynamic synchronization between cash flow and planning/forecasting activities
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