Modeling & Forecasting Services
ClearFinancials® powerful modeling functionality allows the Business Consultant to forecast every account in the accounting structure to efficiently produce up to 120 periods of balance sheet, income statement and statement of cash flows. In addition to relational-based forecasting, the application allows users to overwrite with known or expected values while the algorithm solves around user input values. This powerful process combines the efficiency of statistical forecasting with flexibility to accommodate unique or ‘known’ values, seasonality or one-time events.
In addition, the ClearFinancials® model enables the consultant with the ability to adjust drivers to solve for performance levels necessary to meet specific financial objectives including user defined equations. For example, consultants may adjust drivers such as SG&A expense, inventory turnover, receivable age, payable age or a host of other drivers while simultaneously observing the impact on free cash flow, EBITDA, ROIC, EVA or other financial objectives throughout 120 periods. This functionality is ideal to perform shock-tests, risk analysis or model the impact on loan covenants under a variety of economic conditions.
Once the desired model is complete, it may be converted to a budget where sets of metrics can be assigned to individual dashboards or reports designed to drive stakeholder accountability. The dashboard or reporting functionality is dynamic in the sense that stakeholders may insert monthly commentary to explain performance for the period to create a dynamic and interactive environment that facilitates accountability.
Use ClearFinancials® modeling functionality to efficiently provide a variety of deliverables to your client.
- Shock Analysis – Observe cash flow behavior under various ‘what-if’ economic conditions.
- Financial Planning Proforma – Create up to 120 periods of financial statements including balance sheet, income statement and statement of cash flows based upon management assumptions.
- Value Creation – Identify specific value-creation opportunities.
- Value Capture – Produce a list of the underlying drivers necessary to achieve the value creation objective along with the individual performance levels necessary to achieve the objective.
- Viability Analysis – Conduct analysis to ascertain viability of plans, assumptions, acquisitions or divestitures.
- Strategy Recommendation – Efficiently identify actionable strategy to achieve specific financial goals such as improving cash flows by ‘x’ or creditworthiness score by ‘y’.
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