To this day financial planning and analysis for most organizations is still dominated by the traditional budgeting approach. Even though this approach has consistently shown to have a high rate of inaccurate assumptions, and requires massive time commitment and tedious manual input, adoption of driver-based financial planning is still elusive for many organizations.
Driver-based planning bases financial forecasts on operational drivers such as units of product, FTEs, customers, deliveries, transactions, and more. It uses mathematical and linked relationships to create budgeting, forecasting and planning models, reducing errors by requiring fewer manual inputs and saving time by using preset calculations based on operational activities.
Unfortunately, most organization still use excel spreadsheets for budgeting, and, depending on the size of the organization, require as much as three or four months of a time commitment devoted to budgeting each year. Based on a recent study an organization spends an average of 20,000 person days a year or $10 million in cost on budgeting per billion dollars in revenue. (Axson, David. The Management Mythbuster. Hoboken, New Jersey: John Wiley and Sons, Inc., 2010). Once so much time is spent on the process, many organizations are faced with a time crunch in regards to analysis.
Neubrain's powerful Driver-based Planning and Cost Modeling solution incorporates a best practice methodology that bases financial forecasts on operational drivers. Our solution uses mathematics and linked relationships to create budgeting, forecasting and cost models. It reduces errors by requiring fewer manual inputs and saves time because the calculations are preset and based on operational activities or drivers, such as units of product, customers, installations, deliveries, and transactions
Our Driver-based Planning and Cost Modeling solution uses your key operational drivers and business activities, to model financial data such as revenue projections, headcount, spending, and capital requirements. With our solution, your managers are empowered to do better budgeting and improve the accuracy and decision-making usefulness of rolling forecasts and cost models.