Ever heard of the term Monte Carlo Simulation. Its more than just an awesome casino its a much better way to make forecasting decisions.
Want to know more?
Read this blog and you will change your mind about decision making.
Introduction to the co-author
Cindy is a CPA and FP&A (Financial planning and analysis) practitioner with senior technical and leadership experience, mainly in Canada’s Energy sector.
She has worked at small private companies to larger multinational public companies in various capacities including supporting strategic initiatives, leading budgets and forecasts and implementing business improvement processes.
Craig lives in the US which is why he says he “spells modeling more efficiently ;) ” and the rest of the article is not written in the Queen’s English.
Craig is an IT executive with strength in systems, but he is no stranger to business and finance. His finance experience started working for a mortgage banker when US interest rates were double digits and debt instruments using the rule of 78s created negative amortization.
Typically in finance we have a particular type of cadence.
This cadence is largely consistent across different organisations no matter what the industry you support. We are likely to have some or all of these:
Quarterly reporting and forecasting,
Half year reporting (if listed),
Annual statutory reporting and tax filing (we all have this one),
Annual budget process and
Longer range strategic planning for 3 to 5 years.
Now that's a pretty full dance card if you ask me.
So how do we keep up with all those requirements whilst making sure that we are not just hitting the deadlines but actually accelerating the value that we add to the business.
Read our latest blog for more insight without the big price tag attached.
Very few 😬 finance professionals have what it takes to build a good financial model, but if you use a few short steps you can find 👀 those diamonds👷 in the rough.
It's like changing someones title to Finance Business Partner and expect them 😁 to suddenly add value and build good models.
It doesn't work 👎that way, never will!
Without the right training and hiring you will just be running on the same tredmill 😵 with the same people with the same skills gap😱.
Being an advanced excel user📈(not that anyone can succintly explain exactly what that means) helps, but its certainly not the only criteria.☝
Forecasting does not guarantee you will be great at financial modelling. 😱
Just because you can drive a car doesn't mean you can be a Formula 1 race car driver. 🚗
Playing T20 cricket doesn't guarantee you will be a great test cricketer. 😁
The same goes for forecasting and financial modelling. 📊 📈 📉