budget - forecast- projection - corporate - financial

Budgeting - Forecasting - Projections

Why Use Financial Wonder Formulas with Microsoft Excel and your other budgeting software to satisfy your budgeting, forecasting and projection needs ?

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budget - forecast- projection - corporate - financial - Microsoft Excel
Large & Mid-Sized Corporations - integrates into existing corporate MS Excel templates. Financial Wonder takes ANNUAL line-item budgets, forecasts, and projections, and produces ACCURATE MONTHLY budgets based on financial geometric progression and seasonality. We are the ONLY service that allows large and mid-sized corporations to produce ACCURATE monthly financial spreading based on annual forecasts. Financial Wonder is a MUST for any size company that wants to produce ACCURATE monthly budgets.

Budgeting The Old Way !

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Budgeting The Old Way !

Financial analysts typically create budgets and forecasts using
1) Spreadsheet templates in Microsoft Excel, or using
2) Expensive systems that are good at storing large quantities of numbers

The problem with these products for budgeting is that they are fancy calculators that cannot think like a businessperson. For example, assume that sales for 2003 are $100,000, and sales of $200,000 are forecast for 2004. Of course, this is a macro view, and you will need to develop a set of monthly financial projections so that you can determine monthly cash-flow. The typical spreadsheet budgeting template or high-cost budgeting system will spread that $200,000 evenly over 12 months, or about $16,667 each month. A considerable amount of time will be needed to properly create a set of monthly estimates for every financial account budgeted, to determine monthly cash-flow.

Budgeting The Correct Way !

Budgeting - Progression

Budgeting The Correct Way ! - Progression in 30 Seconds!

Financial analysts understand that some budgeted accounts can be spread evenly across a year, others require progressions, and accounts such as sales often require both progression and seasonality. Often, the total of these monthly amounts must add to an exact growth percentage, to fit management's discussion and analysis documents, so sometimes it is best to work with fixed amounts, and other times growth percentages are a better choice. Sometimes, the budgeting results need to be smoothed, and other times the financial analyst would like to see the impact of seasonality on the final budgeting results.

The Sales-progresson chart to the left shows an example of a progression, where the base year was $100,000 in sales, and the projected year is $200,000 in sales. The budgeted results are represented in an Excel chart.

Budgeting The Correct Way !

Budgeting - Progression + Seasonality

Budgeting The Correct Way ! - Progression + Seasonality in 60 Seconds!

The Sales-seasonal chart to the left shows is the same progression example, which has been modified for monthly seasonality of 5%, 5%, 5%, 5%, 5%, 5%, 5%, 5%, 10%, 10%, 20%, and 20%. The differences created by seasonality were then smoothed throughout the monthly results, so that budgeted sales for the projected year still total $200,000.

Financial Wonder Formulas typically need just 2 amounts, 1) an opening amount, and 2) an ending amount (in the form of a dollar amount, a dollar increase, or a percentage increase) to create a full set of budgeted monthly results.