Driver-based modeling for budgeting and forecasting
Make plans based on what drives results
Go beyond totals with no context, and provide insight by linking your figures to real business drivers like sales volume, hours worked, and margins. Contributors provide input where it makes sense, while the logic and formulas are protected.
A short explanation of driver-based modeling
Driver-based modeling in budgeting and forecasting mean that contributors don’t enter amounts directly into the P&L lines – they work with what actually drives the numbers, such as headcount, units sold, billable hours, production volume, customer base, and so on.
The models link variables to profit and loss, balance sheet, and cash flow through defined relationships.
You don’t just see what the numbers are – but why they are what they are, and how they will change if the underlying drivers change.
Configured with the logic from your spreadsheets
The logic in spreadsheets is often the result of years of expertise and deep business insight – fine-tuned by finance professionals who know the company better than anyone.
The problem is that, at some point, companies outgrow spreadsheets. With the CFO platform, the valuable logic in your spreadsheets can be built into a scalable solution that more people can understand, use, and contribute to.
Driver-based modeling in practice
Med driverbaserte modeller kan andre få slippe til uten risiko for å ødelegge formler eller kalkulasjoner. Strukturen tilpasses forskjellige behov for å være relevant for den enkelte bidragsyter, samtidig som du bevarer full kontroll på formler og kalkulasjoner.
Define business drivers
Define dimensions such as product, market, project, or activity. Add new rows to create targets and scenarios – for example, number of units sold or planned hours.
Open for input (with logic protected)
As a power user, you define the logic behind the calculations. Input fields are clearly separated from calculated fields, and what should be locked stays locked.
Contributors can only provide input where it’s relevant to them.
Run the numbers and analyze
All numbers and relationships are connected through predefined calculations, assumptions, and allocation keys.
Profit and loss, balance sheet, and cash flow are updated in real time.
Click to see how each figure was calculated, or how it’s used in the model.
Time to end the reign of spreadsheet-base budgeting
When budgeting and forecasting rely on person-dependent spreadsheets, the entire organization becomes vulnerable.
With driver-based models, you embed the logic in a solution that more people can understand and use.
You gain structure, ownership, and engagement around the numbers – without losing control or valuable expertise.
