Running your business on a spreadsheet is hard. True insights will only be achieved if you can analyse current performance with a 3 way cashflow forecast.
Work in a real-time environment. It empowers strong and fast decision making.
New data added to your Xero or QBO account will be pulled through to Futrli automatically. And, of course, you can refresh your data on demand too.
Many businesses will have an existing budget set at the beginning of the year. Upload into Futrli and save as a budget. But also make a copy and use it as version 2 – your forecast. It’ll flex and move with your business as the year progresses. The difference between a budget and forecast is explained here.
Working in this scaleable fashion means your team will unify, and will strive to hit the same overall targets. Share your forecast with employees, so they understand how their tasks and roles help the success of your business.
You must forecast activity in your P&L as that is where the assumptions about your operational activity resides. But balance sheet movements and the impact on your cash flows are equally important. All should be monitored, ideally, weekly. This is difficult in a spreadsheet, but not with Futrli.
A basic round-up: Your P&L shows you the revenues, costs and expenses incurred during a specific period of time (a month or quarter, for example). Your balance sheet displays your liabilities vs your assets, so you see a literal balance between the ins and outs. Cash flow statements show all the cash your business receives from its ongoing operations. It also shows external investment sources and all cash outflows.
There are different tools within Futrli for different uses. The dashboards are your operational companion. Alerts monitor your most important metrics at all times. PDF reports transform all of your data into board reports, funding applications or business plans. Forecasts are your window to every possible outcome your business has.
Any existing budgets that you have can be exported from your accounts package and then brought into Futrli. You can even turn your budget into a cash flow forecast at the same time.
You can set the appropriate sales tax and credit terms for every item you wish to forecast (with flexible payment profiles), allowing you to accurately model the cash flow impact of a zero-rated tax invoice to be paid in 60 days or the tax obligations of an item paid today with 20% VAT/GST.
Navigate to the forecasting section of Futrli. You will be prompted to map your “default settings” which is where the 3-way magic happens. You will enter your tax settings (if you pay GST/VAT) and map your default bank account, accounts receivable and accounts payable lines. These only have to be entered once, to let the system work out the core automatic 3-way forecasting calculations for you.
There are 7 ways to create a new budget, forecast or scenario (as they are all created in the same place to streamline your user experience).
You can use your historical data to instantly create a picture of how you expect the business to perform in the future, by using the last year’s actuals option for instance: this gives you a full forecast in 5 seconds taking your last year’s operational data as the basis.
If things stay the same, how does this affect your cash? It can be a great diagnostic and a great place for you to start if this is new to you. Hit New on the forecast page next to your organisation and you’ll be presented with the varied options.
Alternatively, you can:
Each account line can have multiple forecasts per account. Businesses are complex, and one amount for an account does not usually apply.
Create a different forecast line per account to track activity down the line. This could be in the bank, accounts receivable/payable accounts or cash flow statement, as every transaction can be drilled into.
All forecast data can be viewed as seamlessly as your accounts data. Use this in operational dashboards, and PDF reports to gain insight over:
Identify the key performance indicators (KPIs) that are relevant to your business. Some industries will have similarities, but a business’ lifecycle and size will mean each one will have specific KPIs.
These are standard for all businesses however in a more general sense:
1: Revenue over the next 12 months.
2: Net income/profit.
3: Net cash flow.
4: Bank accounts (cash flow).
Create Snapshot cards on your dashboard to monitor these daily – we use them every day at Futrli.