An article by Geof Nightingale - Director
On several occasions, I have been appointed by a Board of Directors as the Executive Director or CEO of a New Zealand technology or software start-up. Many of these businesses have been in the market for more than 5 years.
The challenge is often not that the product or services are not proven or a ‘WINNER’ in the market, but that, at any given time in the revenue cycle, I could not trust the numbers from the financial team.
Why you ask?
Because most of the business financials, outside of the accounting package, were calculated on spreadsheets. Sales forecasts and budgets, marketing expenditures, and corporate financial projections were developed by BDMs (Business Development Managers) or Accountants using only what they know.
With financial projections often going out multiple years and complicated formulas, the cells did not carry across with the same degree of accuracy or precision that the board expected, or that the CEO needed when presenting month end or quarterly figures to the owners and directors of the business. These errors pervade the model into the balance sheet and the cashflow, often the Excel model did not even include a balance sheet.
Realizing that the directors were financially obligated to shareholders, the simplicity and familiarity of a spreadsheet was often accepted by the presenters as accurate! Only to be evaluated and found on many occasions that they were not correct!
Does this sound familiar to you?
In today’s dynamic world where financial errors can destroy a company, we have a solution available to any business, from SMEs to Enterprise Corporates – the solution is Forecast 5.
With Forecast 5, you can be confident that the results you’ve just reported are correct! Forecast 5 focuses on the delivery of accurate and comprehensive budgets, providing all the logic to complete your budget, cashflow and forecast without the strenuous mental math. And with guaranteed accuracy, Forecast 5 can calculate out 15 years and lets you adjust the numbers to predict trends or movements in the exchange rate with ease!