This tool provides an integrated view combining the short-term (next 24 months) forecast with the long-term (next 5 years) plan. Essentially, it enhances the Short-term planning and forecasting tool with a long-term business plan. One of the key benefits is that the short-term and the long-term plans will be consistent with each other.
The short-term and the long-term plans use the same structure. They can be used in a variety of manners:
- either in a stand alone manner, i.e. independently from each other
- or linked to each other, so that the short-term plan takes the first two years of the long-term plan into account: the budget for the current year and the plan for next year. And vice-versa, the long-term plan is based on the same historical financial results as the short-term plan.
Some of the key features are:
- both the short-term and the long-term plans are driver-based.
- the short-term plan covers 3 years in months: the previous year and its monthly historical data; the current year combining both historical data for the past months and the forecast until the end of the year; and the following year forecast in months.
- the long-term plan covers a period of 10 years: 5 years of historical data, the current year, and the next 4 years.
- the tool includes a commercial model that provides a sales forecast along multiple dimensions: by product line (#1, #2, #3, #4), by product ‘component’ (hardware, software, service), by geography (countries, regions).
- the (monthly) historical data for the current and previous year are extracted from Excel tables generated from the ERP system. The columns in these tables include: account number; account name; cost centre number; month number; and account balance.
- full financial statements including P&L, Cashflow, and Balance Sheet.
- numerous charts to visualise how the business is performing, in the short-term on one hand, and in the long-term on the other hand.
Feel free to contact us if you would like a demo of this tool before registering as an Advanced member.