Why we are different to Xero or QBO’s budget
We are often asked why new users of our reporting functionality should use FUTRLI for their budgets instead of their accounts package. Here we explain why…
They allow the user to set a budget for each P&L account, in monthly blocks. This is a great first step, but it’s not the whole picture.
The analysis this allows is a straight P&L actual v budget variance. What is missing is the ability to forecast cash flow and balance sheet movements such as fixed asset purchases or VAT/GST payments and their impact. It’s only a third of the picture and that can be dangerous for some.
To really protect your business and avoid nasty surprises, look at the full picture with FUTRLI.
Any existing budgets that you have can be exported from your accounts package and then, by using our import template, brought into FUTRLI. We don’t do an auto-sync, because even at import, we go a step further. We have designed our template to let you turn your budget into a cash flow forecast at the same time. Each account line can have a default GST/VAT % attached to it and the standard credit terms that apply.
We create an on-the-fly forecast (one of our 4 forecasting methods), for each imported line and then you can start flexing!
Each account line, unlike Xero or QBO, can have multiple forecasts per account. Businesses tend to be complex, and one amount for an account does not usually apply. By creating different forecast line per account, you can name them, have different assumptions at invoice and payment level and easily track their activity down the line in the bank, accounts receivable/payable accounts or cash flow statement, as every transaction can be drilled into.
Understanding the cash flow movement of each account is really important for painting a clear picture of what you think your business will achieve (budget) and what your business is actually doing (forecast). You don’t want to be in a position when comparing a budget that only focuses on the P&L that you think you are in a good position, but in fact you are about to run out of money to pay your suppliers and staff.
Another clear advantage of preparing your budgets and forecasts in FUTRLI rather than your accounts package, is that the actuals also flow through to the scenario, automatically. With our daily syncs, your data is always up to date and you can assign when you want your actuals to begin from within scenarios and reports.
“I have secured new clients by demo-ing FUTRLI ... based on the forecasting and budgeting capabilities. So, as well as giving current clients a great service, it's helping me grow my own business.” - Simon Lee