It has long been said that the constant reality in life is change. But it's a good bet that even Heraclitus, the first to coin the famous phrase, would be amazed at the speed and proportions of the changes that have taken place among us in recent times; particularly those involving global economic systems and diverse sectors of activity, which not only had to react quickly but also became less predictable.
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This uncertain environment has made decision-making and planning processes much more difficult for companies and increased the risks taken on a daily basis.
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Scenario planning through an economic-financial planning instrument makes it possible to analyze the long term in a market in which uncertainty reigns. Planning scenarios implies choosing, today, among several options, with full understanding of the possible outcomes. It can be defined as a tool to order the different perceptions of the future in which these options will produce effects and results. Valini Consulting offers its clients simulation models fully adapted to the reality of their company and market. These models make it possible to create and simulate the most varied scenarios and immediately analyze future economic and financial impacts. This tool can become your budget tool and be integrated into your Results Management
If you choose, this tool can become your budget tool and be integrated into the GRN.
Strategic Interaction of a Company
Companies, when planning an economic-financial scenario, must analyze all the external and internal factors that influenced their projections.
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Financial Planning can be short and long term. The short term is used to analyze more volatile scenarios, in which there is a need for constant review. The long-term is when the external and internal variables are more predictable, and their revaluation can be carried out over longer periods.
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For short-term Financial Planning, the ideal is to work with periods ranging from six months to one year, with quarterly reviews.
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The Short Term Financial Planning process reflects the expected results of short term actions.
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A good sales forecast is the basic input for preparing a good Financial Planning. Then, a production plan is developed that takes into account the time needed to convert the raw material into a finished product. This production planning generates the demand for raw materials and direct and indirect labor, tax forecasts, operating expenses and thus, the expected result is reached.
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The main reports of a Financial Planning are:
Projected Income Statement
Projected Balance Sheet
Projected Cash Flow Statement
Contribution Margin Statement
Expense Analysis Statement by Cost Center
Projected Performance Indicators
Dynamic Graphics
Closing the monthly managerial result
Confrontation with predicted values
Review of parameters for new financial planning
Actions required to correct deviations
Closing the monthly managerial result
Actions required to correct deviations
Confrontation with predicted values
Review of parameters for new financial planning
The main advantages and benefits of implementing a Financial Planning - NFP
Being able to simulate various scenarios
Create a Budget Culture
Know in detail all the company's expenses as you will deal with them constantly
Analyze impacts on working capital
Know the necessary sales volume that will support all the company's costs and expenses
Simulate the ideal financial cycle
Know how far you can work with third-party loans without harming the results (Leverage Concept)
Analyze impacts of new investments in the company
Simulate different prices
Simulate cost increases or decreases
Simulate cash strategies
Know future profitability and profitability
make safe decisions
If your company does not have a structured financial planning in which you can visualize scenarios and anticipate possible inappropriate economic and financial situations, please contact us. Let's go to your company to demonstrate our work methodology.