Budgeting and Forecasting



To be a successful player in today’s environment, one has to have robust budgeting & forecasting system. Following are some of the key benefits from this exercise:

♦ Knowing your cashflow and other resources requirement.

♦ Planning and preparing for any contingencies.

♦ Setting goals and targets for key management personnel

♦ Drawing up growth strategy and identifying milestones.

This is a very important function and if you are planning to raise funds (be it bank debt or PE/VC funding or IPO), you need to have a robust budgeting system that allows you to provide accurate forecasts to your investors & lenders. This cannot be achieved overnight, and comes only through sound planning and undertaking serious budgeting & variance analysis internally, every month. KGBM assists in drawing up detailed forecast model which starts with brain storming and discussions with all key stakeholders. We then evaluate information currently available on hand and provide the same in comparable format to take informed decision for forecasting purposes. Thereafter we engage with the senior management team in discussing and debating on the numbers to validate all assumptions, after which we build a detailed forecast model. Our involvement doesn’t stop there. From thereon, we help the company in implementing the budgeting system and also hand-hold the company’s accounting team with generating monthly variance report for a cycle or two, until they are comfortable generating reports on their own. To simplify the process for the accounting staff we also provide exhaustive templates, with simple data input sheets, wherein they could feed their actual financials from their accounting software and generate detailed management dashboard.