Custom What-If Scenarios can be developed for both the P&L and the Balance Sheet. An authorized user can apply their own assumptions against any set of financial statements for a given period of time. Such assumptions would typically include Sales Growth assumptions, Gross Margin assumptions and Spending assumptions for each Financial statement line (Balance Sheet and P&L). The net impact of all of these assumptions will generate a “What-If” set of financial statements. Additionally, the amount of cash generated or used under any What-If Scenario and the Return on Equity under the What-If Scenario is computed and compared against the historical levels. What-if Scenarios can be developed by management in minutes — not hours or days as is typically the case with any spreadsheet forecasting of the financial statements. Similar to P&L Projections above, What-If Scenarios can also be computed at a very granular level, such as developing a specific scenario for a region or for a division.
P&L Projections are now auto-generated by Financial Tracker™ every month based on any of the following methodologies:
1. Continuation of Trailing Actual Results Trendlines over the remainder of the year
2. Actual YTD Results + Average Trailing Monthly Results over the remainder of the year
3. Actual YTD Results + Remainder of Year Results assumed to be the same as prior year
4. Actual YTD Results + Budget for remainder of year
5. Actual YTD Results Annualized
P&L Projections are developed at a granular level, so you can drill down into the projections to view the projections by Region, Location or Division, or to drill down into the projections to view projected amounts by F/S line, general ledger category or account.
The new P&L Projections functionality is in addition to the “What-If Scenario” functionality added to Financial Tracker™ early in 2020.