Horizon Linkage
Financial Software for the Business Professional
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Profit Plan philosophy assumes the CEO/CFO will first focus on the longer term horizon; looking 3-5 years into the future with a broad brush. Here the goals and directions of the firm are measured and established. Next a budgeting perspective is developed for the more near-term; typically the next 12-18 months. Here, the focus is on tactics; i.e., when to actually acquire that next piece of equipment, launch the new product, etc. To generate the initial monthly forecast, Profit Plan provides an automatic linking process though the form shown below. The resulting forecast is then updated for near-term scheduling issues. Finally, the impact of these budget considerations can be linked back into the longer term plans found in the Annual Horizon.
This form builds formulas that produce a Monthly forecast equivalent to the Annual forecast by applying a Seasonal Profile. |
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