Financial Forecasting
Financial forecasting done properly, the FDPack way.
The unique FDPack forecasting methodology works with a high level of detail and double entry discipline to ensure we do the job “properly”. Detailed, accurate and integrated.
What do we mean by
“financial forecasts done properly”?
Actual accounting statements are prepared with the discipline imposed by the double entry debit and credit system which means that, for example, you can’t record a sale into the P&L account (a credit) without also recognising that there is also a debit side to the transaction being either an invoice issued to a debtor or a cash receipt.
Profit & Loss
Cashflow
Balance Sheet
Thank you for helping us to get our figures together. I can now sleep better at night.
William Moore, CEO of AirBox Systems
How we Forecast
When it comes to forecasting anyone can create a profit & loss on a spreadsheet by simply listing revenue and expenses, but a P&L on its own will only tell part of the story.
For example, will the business have the finance it requires to deliver the predicted level of activity and what does the balance sheet look like at the beginning and end of the forecast period?
Financial modelling and rolling forecasts
The unique FDPack forecasting methodology works with a high level of detail and double entry discipline to ensure we do the job “properly”. Our model is built with the following structure:
Drill down into the detail
Having separated the forecast into different transaction types and attached the appropriate accounting codes, our FDPack software is then able to create all the double entry transactions that describe the forecast or budget.
This creates a single database containing, actual, forecast and budget transactions all in the same double entry format, meaning that they can be easily analysed and presented in whatever combination is required.
If you drill down into any line of the forecast, you will see transaction level detail and not just a single figure, which is the assumed opening/closing balance movement used by some short cut forecasting methods.
Save Time with Smart Reporting
Like all jobs that are done properly, our FDPack methodology is initially more demanding and time consuming but has significant long-term benefits for the accuracy and reliability of the forecasts and budgets.
Applying these disciplines to forecasting and budgeting ensures that the three financial statements are integrated and reassures stakeholders that the business really understands the mechanics of its finances and its cash flow.
“The FDPack modelling technique is like renovating a classic car. At one point the parts are all over the garage floor but, by the time you have cleaned them up and put them back together again, you have an intimate knowledge of how the car works. Like any classic car it also needs continual attention to keep it running smoothly”
Simon Phippen, FDPack Consultant.
Blogs
Useful content to simplify and demystify a range of financial subjects
Financial Due Diligence Red Flags: What Buyers Look For and How to Fix Them
Financial due diligence does not introduce new issues. It identifies existing ones. Red flags typically arise from inconsistencies, lack of clarity, or weak financial structure. These issues reduce buyer confidence and can lead to valuation adjustments, delays, or changes in deal terms. Preparing for due diligence means resolving these issues in advance, not explaining them…
Working Capital Optimisation: Unlocking “Hidden Cash” to Fund Growth Without Debt
Many businesses look externally for funding when they need to grow. In reality, a significant portion of that funding already exists within the business. Working capital represents cash tied up in receivables, payables, and inventory. When these are not managed effectively, cash becomes delayed, restricted, or invisible. Optimising working capital is not about generating new…
The Hidden Cost Of “Finance Bloat”: Why Big Departments Often Produce Slower Decisions
Larger finance teams do not necessarily produce better decisions. In many cases, they slow them down. As finance functions grow, they accumulate layers of process, reporting, and approval. This increases complexity, delays the flow of information, and distances decision-makers from the underlying reality of the business. The issue is not the size itself. It is…
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