• Introduction
Plan sequence and how to create a forecast
PROFORECAST is template driven, so that a complex forecast can be built rapidly and accurately without the necessity to build formulae. There are templates covering cost centres, loans, capital structures and revenue models. All templates can be used in combination with each other, so that for instance if the range of inbuilt templates does not exactly mirror the requirements of the user, by using multiple templates in combination the user can create the scenario required.
The plan sequence is as follows:-
A. Add Plan and enter basic company information and create structure.
B. For an existing business build the opening Balance Sheet and use sub tables to break out balances.
C. Create loan structures
D. Add commercial data, departmental costs, salaries, fixed asset purchases, capital structures etc
E. Create revenue models
F. Run "What If" scenarios
G. Output the reports
Following the creation of the revenue models the plan is finished, the output reports can be viewed and the global “What If Analysis” tool can be run, which includes Price Elasticity of Demand, and Monte Carlos analysis of sales and gross margins.
ProForecast is designed for top level strategic forecasts to be done in a detailed and accurate way. The Step Change® function is of major value here: e.g. factor in sudden interest rate or component cost changes, currency rates or any other change. It can help you and your clients make decisions on new products and their timing, perform stress testing to justify investments and persuade stakeholders, evaluate investment opportunities and a range of other strategic decisions.
How to create a forecast.