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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
5 Best Practices of Effective Budgeting & Planning: From Theory to PracticeBill Aiken, CEO, Abacist GroupEric Zimmerman, FP&A Manager, Infusionsoft
Welcome to Proformative
Proformative is the largest and fastest growing online resource for senior level corporate finance, treasury, and accounting professionals.
A resource where corporate finance and related professionals excel in their careers through:
• Uniquely valuable, online Peer Network
• Direct subject-matter-expert advice
• Valuable Features and Resources
All of it completely noise-freeCheck it out at www.proformative.com
Learning Objectives
After participating in this event you will be able to understand:
• Understand how to deliver timely and accurate re-forecasts & what-if scenarios
• Discover how to drive better business decisions through improved reporting and analysis
• Understand how to implement 5 key best practices in effective financial planning at your company
• Learn how to improve companywide participation and alignment in your company’s budgeting and planning efforts
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Bill AikenCEO at Abacist Group, Adaptive Planning & NetSuite Planning implementation partner
© 2013 Proformative. Proprietary and confidential
Abacist Grouptop Adaptive Planning Partner
3 time winner of Adaptive Planning Top Partner Award!
In class of most tenured Certified Adaptive Planning Partners
Have been ranked #1 across Adaptive implementers for Client Satisfaction
Have successfully completed over 100 Adaptive Planning projects
Role of Finance – Where Are You?
TransactionManagement
Annual budgeting
Financial accounting
Controlling the Business
Variance reporting
Tax, audit, treasury
Planning & Analysis
Rolling forecasts Performance
management Analysis of drivers
Integrated Functional Excellence
Enterprise-wide collaboration Empowering business units to
self serve analysis Predictive, ‘what if’ planning
AccountantsDominated by complex systems and detail
1
Process ManagersFocus on improved reporting and minimizing risk
2
Business PartnersDecision support
Provides sound financial analysis
3
Business LeadersIntegral part of management
Creates value by providing information and analysis for operating and strategic decisions
4
Stage
Key Capabilities
Expectations have increased for finance organizations
Automated actual imports
& re-forecasting
Real-time, easily
consumed data elevates
strategic dialogue
Driver-based models with drill-down &
what-if
Easy interface,
note-sharing, approvals &
alerts
Designed for business end
users
Best Technology Enables Best Practices
Practice #1 Integrate ERP & Planning
Practice #2Adapt to Business Changes
Practice #3 Expand Business Drivers
Practice #4Improve Collaboration
Practice #5Break-down Barriers to Self-Serve Info
Evolution of CPM & BI tools
Powerful Features
o Very Expensive
o Highly Complex
o Slow to Deploy
o Hard to Use
o IT-Intensive
Easy to Use
o Manual / Slow
o Error Prone
o Non-Collaborative
o Doesn’t Scale
o Not Secure
LEGACY ENTERPRISE
LOW-END TOOLS
CLOUD SOLUTIONS
Easy to Use
Powerful Features
Quick to Deploy
No IT Required
Collaborative
Scalable
Continuous Innovation
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Eric Zimmerman FP&A Manager at Infusionsoft
© 2013 Proformative. Proprietary and confidential
Infusionsoft at a Glance
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• The only all-in-one sales and marketing software built for small business– Enables small businesses to get organized, attract
more customers, grow sales, and save massive amounts of time
• High growth business with pay-as-you-go and subscription based solutions
• 17,000 customers around the globe– Explosive-growth– 60K+ users– 443 employees
• Headquartered in Chandler, AZ
The Challenge
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• Newly implemented NetSuite ERP and Adaptive Planning
• Hired in October 2012 with experience using Hyperion, SAP, and spreadsheets
• Needed to transform the company’s 2012 annual budget from spreadsheets into Adaptive Planning
• Self implement cloud-based Adaptive Planning integrated with NetSuite in 5 weeks
Moving Planning Processes to the Cloud
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• Core business drivers of a Cloud provider– People and Marketing investments are largest business
levers
• Annual budget with quarterly and monthly planning– Departmental expense budgeting– Personnel and revenue planning
• Monthly close includes all board and executive reporting– Balance sheet, income statement, and cash flow
planning
• Long range planning and what-if analysis
#1 Integrate ERP and Planning
© 2013 Proformative. Proprietary and confidential 13
• Push button actuals transfer to budgets and forecasts automatically
• Back and forth integration of NetSuite and Adaptive Planning eliminates manual data cleansing and spreadsheet work prone to errors
• Fast, efficient monthly close
• Centralized source of truth – Budgets– Forecasts– Actuals– Variances
#2 Break Down Barriers to Information
© 2013 Proformative. Proprietary and confidential 14
• Executive team gaining earlier access to critical data
• Managers see timely actuals integrated into plan
• No more ‘meeting killers’ arguing over data validity
• 3 week process of performance reporting reduced to a few days
• Earned Employee of the Monthin my first 6 months -Camaro, gas, and meals card for a month!
#3 Adapt to Business Change
© 2013 Proformative. Proprietary and confidential 15
• Automated assumptions modeling and what-if analysis– 3 year planning with varying cash flow implications– What-if analysis on revenue growth or constriction– Equity event needs analysis
• Answering CFO questions in near real-time
• Business acumen of department managers and directors has increased – Data at fingertips – Numbers tell the story…We get to the story quicker
• Increased productivity enables more strategic dialogue, collaboration, measurement, and decision making
#4 Improve Collaboration
© 2013 Proformative. Proprietary and confidential 16
• FP&A now a team sport
• Collaborating more effectively with a broader set of stakeholders– Adapting Planning usage increasing
from 25 to 45 seats
• Working together on solutions– Identifying causes of variances, ways to reduce– Forecasting more efficiently
• The Cloud enables everyone access to data on-demand from anywhere
#5 Expand Business Drivers
© 2013 Proformative. Proprietary and confidential 17
• Leverage more operational data, reporting and analytics– Central hub for reporting on immense data:– Customer growth– LTV, churn, retention– by channel, region, industry type – Sales pipeline analysis
… to somethinglike this …
Best Practices
© 2013 Proformative. Proprietary and confidential 18
• Integrated ERP, G/L, Planning and Reporting systems
• Faster access to business performance information
• Plans always change!
• Drive collaboration
• Leverage more business driver data
© 2013 Proformative. Proprietary and confidential 19
THANK YOU
If you have questions about CPE Credit, please send an email to [email protected]
Please join us at www.proformative.com to ask any additional questions you may have and to continue this conversation with your peers and the experts you heard from today.
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