What will happen next, and how can we optimize the outcome?
Not sure how a financial decision you make today will affect your future finances? ‘What if’ scenarios can help identify risks and opportunities and can help businesses make better decisions in the future. Changes from within or beyond the organization can have big implications on your bottom line. ‘What-if ‘ scenario planning shows you the companywide implications of a business decision before you make it.
Profitbase delivers a financial simulation capability that allows for the creation of various business scenarios and real time ‘what if’ modeling. Scenarios can be simulated in order to understand the financial implications in cash position, profit & loss and the balance sheet, without affecting the baseline budget. Scenarios such as investing in new equipment, changes in production or revenue, pricing increases and new acquisitions are easily defined and simulated.
Best and Worst Case Sensitivity
Sensitivity settings are used to produce budget, best and worst case reports showing the budgets working margin of error. These reports provides management with the insight they need to prepare contingency plans should their worst or best case situation actually happen.
With this solution; simulation, forecast and real-time updates of actuals and accurate year-end closing balances are easily obtained. The closing balance automatically becomes next period’s opening balance, ensuring the new budget and associated financial statements are accurate.
Simulation scenarios invoke adjustments and produce the full complement of reports for analysis. Adjustments give management the flexibility to align their financial plans to match the business situation. This solution allows management to adjust any line item or group of items such as products, markets, expenses or purchased materials. Adjustments do not alter the original baseline budget.
Standard Charts and Reports
Our solution provides standard financial statements with actual figures compared against budgets and forecasts. Actuals are extracted from your financial system on a regular basis, e.g. daily, giving management the opportunity to identify and follow up on any deviations. This solution also provides over 25 standard reports and charts showing budget, forecast, best and worst case scenarios. Users can also create their own reports.