Rolling forecast

Overview

Financial executives consider rolling forecasts as best practice. However, the deep financial knowledge required for its design, and the fact that most enterprise IT systems are not designed with a  financial orientation, makes its implementation extremely complicated, especially for large global enterprises. The challenge lies in capturing financial data that is spread across different enterprise IT systems and other sources(internal & external) , and bringing it together to generate the relevant information and intelligent insights that high level management and CFOs crucially need.The EFI system was designed by financial experts, for financial experts.

Its Rolling Forecast module allows the high level management & CFO and the CFO´s team to enter inputs and assumptions that pertain to their plans, and provides them with real-time rolling forecasts. EFI´s Rolling Forecast module is not designed to replace the existing systems such as the G/L, ERP, Treasury or CRM systems but rather complements them by intelligently extracting the relevant data from these systems. It therefore allows the global high level management & CFO to leverage the existing heavy investments in IT and Enterprise systems to simulate their future.

The Rolling Forecast module lets the high level management BOARD/CEO/CFO to:

  • Respond immediately to any market transformation or changes in the economic environment
  • Realize how each financial parameter influences the entire P&L results, cash flow and balance sheet, today, tomorrow, and throughout the next 5 years
  • Analyze and stress test each business unit, operational subsidiary, holding intermediaries, and the related holding company
  • Be alert to Valuation (LTV) aspects, potential future cash-flow difficulties, meeting financial ratios, and credit line availability
  • Make sure KPIs and trends are maintained
  • Minimize corporate financial exposure and optimize risk management
  • Manage investor expectations more accurately
  • Access from anywhere, anytime, through the Cloud Having these capabilities directly impacts the bottom line earnings and maximizes the enterprise´s value.


Having these capabilities directly impacts the bottom line earnings and maximizes the enterprise value.


Feature Highlights

  • 3rd-party market data web extraction (currencies, interest-rates, stock prices, and many more), which enhances the forecast quality
  • Easily compare multiple scenarios and versions
  • Actual based rolling forecasted financials (P&L, balance-sheet and cash flow) on a company-by-company basis, for the intermediary holding subsidiaries level and up-to the consolidated corporate level
  • Full (future) financial ratios analyses, for every level of hierarchy structure
  • Unlimited concurrently updated forecasting levels (conservative, extended optimistic, pessimistic, stress test etc.) plus unlimited Personal forecasting
  • Strong business scenarios simulations and sensitivity analyses capabilities
  • Ability to use past trends to build automated design templates
  • Version comparison of the budget, rolling forecast and actual data at any level, be it secondary levels (financial statements) to individual levels of planning (deviations quantity and price of a single product) or any parameter



Sub-Modules

In addition to the fundamental features mentioned above, the EFI system contains the following sub-modules for Rolling Forecast planning:

  • Sales planning, including discounts and commissions
  • Expenses planning
  • Production, inventory and cost planning, including full support for product trees (BOM-Bill of Materials)
  • Manpower planning
  • Investments and fixed assets planning
  • Built-in and flexible support for all existing and future financing transactions including loans, bonds and derivatives
  • Project planning
  • Allocations of expenses and cost centers of profit centers
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The Ultimate Flexibility of EFI´s Dynamic Planning Systems

The EFI system provides integrated, easy-to-use support for planning non-standard subjects, which can be defined directly by an economist, without the need for programming skills. The system comes built-in to support the following activities:

  • Set unlimited business dimensions
  • Associate features for business dimension information
  • Ability to define design flexible planning cubes based on the same dimensions and other data from previous years as a basis for future planning
  • Ability to define calculation formulas in the cube design and between cubes, such as commissions based on sales