Michael Hoffmann, president and
CEO of Whitebirch Software (www.projectedfinancials.com), which produces scenario-based financial modeling software Projected Financials, said this genre of software ‘simplifies creating, comparing and documenting what-if scenarios’ in a fraction of the time of using traditional spreadsheet modeling.
Mr. Hoffmann said Projected Financials’
structured modeling environment
guarantees the integrity of the
financial model, unlike the free-form
modeling environment of Microsoft
Excel. ‘Users work with a
library of financial objects, such
as prepaid and accrued expenses
and asset-based revolving lines
of credit.’ Each object is
configurable using a set of parameters
that automatically creates line
items for all three financial statements.
The standard business rules built
into Projected Financials dictate
how and where to report such things
as the gain or loss on the sale
of an asset or the difference between
the current portion and long-term
portion of a debt instrument. The
latest version of Projected Financials
includes a new Scenario Editor that
assists in creating and managing
alternative scenarios. The software,
which can be used by either a public
accountant or by an experienced
in-house accountant, includes built-in
business rules that prevent logic
and calculation errors. This helps
to ensure that projections are complete,
the model is correctly structured,
and that the integrated set of financial
statements ties out every time.
Raul Arriondo, president of Financial
Consulting firm Business Dynamix,
says his firm uses Projected Financials
for their clients because of its
ability to handle complex scenarios.
‘My model easily handled multiple
SKUs, dozens of stores, and a battery
of what-if considerations in 20
percent of the time it would have
taken using a spreadsheet,’
he said. ‘When data was changed,
the software automatically updated
the model, and everything tied out
so there were no concerns about
spreadsheet errors.’
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