Logical & consistent
Standardised formulas on each Excel tab that could be easily consolidated meant both business units had an easy-to-use coherent model.
Future proof
Future business changes & the ability to layer in acquisitions were incorporated into the model to ensure it was able to grow with the business.
Flexible scenario planning
A dashboard with clear KPIs and the ability to perform sensitivity analysis ensured various scenarios could be easily created.
Challenge
Increasing use of Kocho’s existing forecasting model identified a number of limitations and questions around its integrity of logic.
This was ultimately preventing the FD from efficiently obtaining accurate outputs. Kocho required a robust, more detailed financial model to support the business growth.
Solution
We structured the model in a way that the two business units had consistent formulas on each Excel tab and could be easily consolidated in a logical and easy to use manner.
Any known future changes to the business were integrated into the model including bonus structure, capacity utilisation plan, and the forecasting of all revenue streams.
A concise set of KPIs were created in a dashboard sheet and the ability to perform sensitivity analysis with a scenario manager was included to allow the business to create various upside and downside scenarios.
The model is also a rolling forecast allowing the user to easily update the historic financials each month.
Results
The new model gave Kocho an easy-to-use tool to forecast financial data and give a clear view of the entire business.
The model continues to be in active use by Kocho’s finance team and is supporting M&A planning.
