Financial Modelling

Despite running in-house accounting software, our clients found that this did not provide adequate analysis of their business and scenariobased forecasting. As a result, they had insufficient “value adding” data on which to base strategic decisions; lenders were unsupportive as they had no clarity in terms of the cash flow/profitability going forward.

Challenges

No divisional breakdowns of data existed; frequent transfers were made between entities and there were no inhouse budgets. We therefore needed to take a step back to ensure that the core data was reliable before moving forward with our forecasting.

Outcome

We took on an interim FD role working closely with the business to remedy core data defects and to set divisional budgets ahead of building a bespoke in-house forecasting system. This split out relevant divisions and switched forecasts to actual data in real time. The model incorporated an integrated Profit and Loss, Balance Sheet and Cash Flow and included debt and trading scenarios, trend analysis, covenants, graphs and ratios. It rolled forward with ease and became the company’s key decision-making and
reporting tool.