Quite a Difference.
A company recently asked us to convert their basic profit and loss budget, which they had prepared in an Excel spreadsheet, into a full financial forecast with cash flows and balance sheets.
Utilizing our proprietary software package, Up Your Cash Flow XT2-2009, we mapped their numbers from their Excel document and into our program and ran the analysis. However, when we completed the task, our numbers simply would not reconcile to their spreadsheet budget. In fact, there was a 1.5 million dollar difference. Their spreadsheet budget had indicated a $3.5 million loss. We only calculated a $2 million loss. Quite a difference indeed.
We contacted the company to inform them about the issue and to see if they could reconcile the differences. They later called us back and humbly told us that their spreadsheet was wrong.
She Loved Her Spreadsheet.
Several years ago a consultant requested our assistance in developing her client’s budget. g We set up a meeting for the next day, where we would employ our software Up Your Cash flow XT2-2009 to build a comprehensive financial analysis. The consultant had prepared the budget in Excel and showed up with a number of spreadsheets. . I asked her why she did that, since I was going to teach her how to prepare her company’s budget using our program. She had no real answer, only that she “felt comfortable” with Excel. So we took the numbers from her spreadsheets and entered them into XT2-2009. Right on cue, we came up with different results when we ran the analysis.
We spent a few minutes trying to figure out why the numbers were different. Finally we took out a calculator and started checking her spreadsheet. The numbers on her spreadsheets did not properly add up. Big surprise!
Every Accountants Nightmare!
Several years ago I became aware of an accounting firm that was hired by a bank to prepare a set of financial forecasts for an investment which the bank was considering. The accounting firm went to their “trusty Excel guru” to prepare the forecast. After countless discussions with the client and numerous changes to the forecast, the client and the “Excel guru” were satisfied with the results.
The client took this information to their Board of Directors. Based on a review of the projected results as presented in the forecast, the board decided to make the investment
In the meantime the accounting firm provided the bank with a $25,000 invoice for services rendered.
Several years later, the partner who had been responsible for the project was notified by the bank that they were considering filing a malpractice action since they discovered that the projections made by the firm’s “Excel guru” were wrong. The partner immediately investigated the information submitted to the bank and of course discovered flaws in the formulas and calculations made.
Ultimately the firm returned the $25,000 fee and fortunately the malpractice claim was dropped.
Is Your Spreadsheet Telling You The Truth?
Yes, of course your spreadsheet tells the truth. The biggest problem is the over confidence of the preparer. There are many people who consider themselves experts in the preparation of spreadsheets which they think entitles them to not thoroughly double check what they have created or give somebody else permission to validate their work. it.
Enter Cash-flow Software XT2-2009
Up Your Cash Flow XT2-2009 is the perfect financial forecasting tool for any business. It’s developed personally by me, Harvey Goldstein CPA and built upon my 45 years experience at the pinnacle of public accounting. Up Your Cash Flow XT2-2009 software was designed specifically for accountants, business consultants, controllers, financial managers and entrepreneurs to provide a comprehensive look into the future.
And most importantly, as we’ve discussed here today, no spreadsheet formulas to worry about, no models to build and zero frustrating integration issues – its all automated and built into this amazing software. This is not an Excel template. It’s a powerful standalone program rich in functionality yet simplistic in operation. And best of all, no more countless hours spent SEARCHING FOR ERRORS!
Develop a Dynamic Financial Plan
Cash flow forecasting deals with the how, when and where of a company’s financial future. Cash flow forecasting is future-thinking and answers:
• How much cash will I need?
• When will I need it?
• Where will I get it?
There is no better solution in the marketplace than XT2-2009 for efficient and effective cash flow forecasting – start building your dynamic financial future today.
HAG


