Cloud CFO Budget & Forecasting Cloud CFO Beta 08/2015 v14
Overview An organisation will typically set the annual budget towards the end of the preceding financial year. Re-forecasting is performed on a periodic e.g. quarterly basis. Cloud CFO will automate this process. In certain group scenarios the budget/forecast process may differ from one entity to the next. For a group view this needs to be uniform in order to have an accurate representation of the group position. The entity user is required to enter their projections based on local assumptions and group has the ability/permissions to adjust where necessary. The level of detail required from the local entity is defined by group. This can be limited to sales projections only for example, or include all information to the level of a line by line entry on the profit and loss and balance sheet. 2
Step by Step Step 1 Set up the report Step 2 Populate the report(s) Step 3 Populate additional input Step 4 Run report 3
Step 1: Set up the report The relevant reports are created by the user at the set up stage. Formatting of a report allows the user to define headings, sub headings, groupings, totals, sub totals and business rules. This is all entered into a template tab which automatically creates the report according to the specifications entered. Once the formatting tab is complete a template report can be run for review. Where relevant, amendments can then be made to the initial screen to get to the required outcome. 4
Cloud CFO ribbon Set up the report 1. Select Reporting from the user ribbon 2. The initial report format and any revisions can then be amended on the following screen 5
Enter the forecasting rules Input the relevant report name in the first column and custom build the report in subsequent columns. For the headings; Report Name, Heading Name and Heading Type the user can then create the layout of the report. This is done by identifying headings and subheadings, grouping previously tagged items and including subtotals and totals as required. Business Rules are identified in an easy to understand format without the need for complicated formulae. 6
Step 2: Populate the report(s) Once a report has been set up it can then be populated during the budget/forecast process. Elements of the report can be auto populated applying appropriate assumptions e.g. trade debtors are 90 days sales (using countback calculation). Cells can be made read only or editable depending on group preference. Once the balance sheet, profit and loss account and additional data tabs are populated the cash flow can be generated. 7
Cloud CFO ribbon Populate report 1. Select Budget/Forecast from the user ribbon 2. Select Amend from the drop down menu 8
Populate the reports Typically, the cells in the balance sheet and profit and loss account report will be one of the following types: Balances that should not change month on month e.g. Goodwill can be auto populated and made read only Balances that are likely to follow a prescribed pattern e.g. trade debtors can be auto populated but in addition made editable by the user for known anomalies Balances that need to be entered by the user (as prescribed by group) remain blank and editable Balances that are auto populated by an additional data tab are made read only 9
Step 3: Populate Additional Input Data that isn t derived directly from the trial balance is included in an additional data tab. Additional data can be used for: Applying assumptions - e.g. VAT rates applied to sales and purchases to estimate month end VAT payable Certain balances in the cash flow report (that can t be derived from the profit and loss account or balance sheet) - e.g. taxation paid Similarly, the additional data tab can also be used when producing other bespoke reports. The cash flow statement can be generated by applying business rules to the balances in the profit and loss account, balance sheet and additional data tab. 10
Cloud CFO ribbon Additional Input 1. Select Additional Input from the user ribbon 2. This will populate a screen for input 11
Populate the Additional Input tab Once Additional Input has been selected, an empty spreadsheet tab will appear with the relevant column headings for completion. Input a description for the information required and enter the balances for the each period of input. This data can be referred to within the business rules of reports e.g. taxation paid for the cash flow. 12
Step 5: Run the report(s) Once all of the relevant data has been entered, the balance sheet, profit and loss account and cash flow will be available in report format. The user can see an accurate and up to date version of the report instantly. The original budget data is retained and not amended once finalised. The budget report will therefore always remain the same. Forecast data is updated during the re-forecast period and can be updated as and when circumstances change. When running a forecast report, prior months results are replaced with actuals and future months with the forecast data entered. 13
Cloud CFO ribbon Run the report 1. Select Budget/Forecast from the user ribbon 2. Select View from the drop down menu to view the report 3. Select Current/Prior Year from the drop down menu to run the report 14
Run report The forecast report will show actuals for the months to date and forecast for the remaining months in the year. 15
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