Budgeting & Forecasting Models
A budget is only useful when it is *actionable*: clear assumptions, measurable drivers, and a direct link to cash. We build CFO-grade budgeting & forecasting models that management teams can actually run - monthly - so decisions are made early, not after the quarter closes.
Our models translate operational reality (pricing, headcount, pipelines, seasonality, production capacity, customer churn) into a financial plan that shows profitability, margins, working capital needs, and cash runway. You get a single source of truth for decision-making, investors, and internal alignment.
Whether you need a clean annual budget, a rolling forecast, or a full scenario engine, we deliver a structured model, an assumptions library, and a simple update routine so your team can keep it current.
What’s included
✔️ Driver-based budget model (revenue, COGS, OPEX) aligned with your business model (services, retail, SaaS, manufacturing, project-based, etc.)
✔️ Rolling forecast framework (monthly or quarterly) with variance analysis and re-forecast logic
✔️ Cash flow projections with cash conversion cycle drivers (AR/AP timing, inventory, VAT/tax payments where relevant)
✔️ Scenario planning: base / upside / downside + sensitivity toggles for the top 5–10 assumptions
✔️ Headcount and payroll planning by role, start dates, raises, bonuses, and employer costs
✔️ Unit economics layer (where applicable): CAC/LTV, contribution margin, gross margin by product/service, churn, utilization
✔️ Funding runway and liquidity planning: burn rate, covenant awareness, minimum cash buffer policy
✔️ Capex and investment planning (assets, tooling, software, one-off projects) with depreciation logic if needed
✔️ Investor-ready outputs: executive summary, charts, key metrics, and a clean ‘model narrative’ explaining assumptions
✔️ Model documentation + ‘assumptions library’ so updates are fast and controlled (audit trail)
What we need from you
✔️ Historical financials (P&L, balance sheet, cash/bank) and latest YTD numbers
✔️ Revenue drivers (pricing, volumes, pipeline, contracts, seasonality) and customer/payment terms
✔️ Cost structure detail (COGS, key suppliers, overhead, leases, subscriptions) and planned changes
✔️ Headcount plan and payroll structure (roles, start dates, compensation, bonuses)
✔️ Working capital assumptions (AR/AP days, inventory levels where relevant)
✔️ Business priorities for the next 12–18 months (markets, products, hiring, investments)
✔️ Any existing budgets/forecasts and the pain points you want to fix
How it works
1. Kick-off: define goals, outputs, cadence, and the decision questions the model must answer.
2. Data intake: collect historicals and key drivers; validate data quality and reconcile key balances.
3. Model build: create a driver-based budget + cash flow logic + scenario engine suited to your business.
4. Review workshop: walk through assumptions, stress-test edge cases, and align stakeholders.
5. Finalize: polish outputs, documentation, and handover with a simple monthly update process.
6. Ongoing support (optional): monthly forecast refresh, variance commentary, and management recommendations.
Typical timeline
Fast-track (1–2 weeks): core budget + basic cash flow + 2–3 scenarios (if data is clean and available).
Standard (2–4 weeks): driver-based model + rolling forecast structure + dashboards/outputs + documentation.
Complex (4–8+ weeks): multi-entity, multi-currency, product mix, inventory, project accounting, or investor pack requirements.
Common pitfalls we prevent
✔️ Budgets that don’t tie to cash (profits look fine, but liquidity fails)
✔️ No driver logic—only ‘top-down %’ assumptions that cannot be managed operationally
✔️ Hidden working capital impacts (AR/AP timing, VAT/tax timing, inventory swings)
✔️ Headcount planned without fully-loaded cost (taxes, benefits, bonuses, onboarding costs)
✔️ Models that are too complex to update, leading to stale numbers and loss of trust
✔️ No scenario discipline—teams get surprised when reality deviates from the base case
✔️ Forecasts updated without variance analysis (no learning loop)
FAQs
Find answers to common questions!
Yes—typically Excel, but we can deliver in Google Sheets if your team prefers. We design for clarity, speed of updates, and version control.
Yes. We can build multi-entity structures and consolidate outputs, including intercompany logic if needed..