Building a Balance Sheet budget with My Business Manager is easy! Starting with last year's actual closing balances, use our KPI tool to set your targets for the "Balance Sheet Drivers" - (Accounts Receivable Days, Inventory Days and Accounts Payable Days). We reverse-engineer the KPIs and that gives us the budget values for Accounts Receivable, Inventory value and Accounts Payable by month. Make any other adjustments, purchase of assets, planned movements in debt, additional liabilities etc. and enter them into the months that you expect them to happen. Your Balance Sheet budget will now be out of balance because the bank account hasn't reflected the changes. (All movements may affect the bank in some way). Nominate the main trading bank account, take the "Balance" option, and your budget is ready to go! Now that you have a P&L and a Balance Sheet budget, My Business Manager can produce detailed Cashflow forecasts and Financial KPI analysis.
via YouTube at 04/07/2009 02:58