Improve Budgeting and Forecasting with Prophix

Roger Knocker • November 26, 2023

Improve Budgeting and Forecasting with Prophix

No doubt, any company trying to operate without proper budgeting will run into cash flow problems and will not be able to plan, forecast and make use of opportunities. Working with outdated budget planning tools, such as spreadsheets, leads to mistakes, time wasted and missed opportunities. 


With the sophisticated, yet easy-to-use budget planning tools from KPI Management Solutions, you don’t have to compromise on forecasting abilities. We offer the Prophix performance management software suite, making it possible to create rolling forecasts, in addition to daily, long-term and drive-based forecasts.


Having a centralised system that allows for the consolidation of segmented data from various sources makes it possible to get a holistic view of the company finances, and to do proper scenario planning. You no longer have to rely on tedious and often inaccurate spreadsheets. Use the automation functions of Prophix to streamline the forecasting capabilities of the company.


Infrequent forecasts can become something of the past. Now you can leave the time-consuming methods behind and use the advance forecasting functions of Prophix to save time and get in-depth insight into where the company is going. The automation of forecasting helps to gain consistency in projections.


The forecasting functionalities provide the enterprise with benefits such as not having to create formulas, which can be incorrect or inconsistent. The task is managed for you. It is a flexible budget planning tool, characteristic of the products that we provide. The integration of data enables consistency and improved planning capabilities, and with this solution, you can track data input and changes, which improves the control and accountability of executive management.


Forecasting can only be done if the budgeting function is carried out correctly. Efficiency in this function is facilitated with the Prophix budget planning tools. You no longer have to work with the rudimentary elements of spreadsheets, which are often riddled with input, formula and saving mistakes. The annual budgeting process doesn’t need to be resource exhaustive.


With Prophix, you can automate the budget submission and review tasks. The solution enables better workflow management and thus the streamlining of the above tasks. The data used for budgeting can be retrieved directly from the general ledger. This minimises the need to assign personnel for data input into budget applications or spreadsheets. With such comes the benefit of not having to consolidate data from various sources.


You thus gain improved control over the budgeting task and benefit from improved employee support for the budget, as employees can immediately see the benefits of cooperation. They are able to input data where and when needed, which also adds to improved personnel involvement in the company budgeting functions.


By using this advanced budgeting tool, as available from us, you can easily identify revenue trends which will help you with income planning, and gaining better and smarter sales policies. Being able to predict income accurately also adds to budgeting abilities. With sales being the basis of the income, you can quickly identify changes in revenue and thus adapt the budget accordingly. The software suite enables you to benefit from consistency in the data regarding revenue, and makes it possible to quickly identify changes to the bottom line and use information to compare various revenue scenarios, which will help to improve planning.


You can also monitor the revenue progress and evaluate your revenue estimates. With this tool, you are able to integrate sales planning, because the employees can input the information from where they are. You no longer have to be concerned about having to make sense of revenue data. The software will do it for you and also improve the transparency of the revenue planning function.


Cash flow planning is made easier through the integration of accounting and treasury data. With the Prophix software suite, you gain an in-depth financial view of the company’s cash flow.


It enables you to integrate cash flow management, rather than having to prepare a separate cash flow projection. Sophisticated analyses of the financial data are possible, thus making it possible to plan investments better, align the enterprise’s purchases with its objectives, and to improve visibility of the enterprise’s financial situation. Automating helps to reduce the time it takes to manage cash flow.


Call us for more information on how to benefit from Prophix, as one of the comprehensive performance management and budget planning tools available from KPI Management Solutions.

The Power of Finance: Visualising Data for Impact

By Clerissa Holm • March 18, 2025
In the world of finance, numbers tell a story. However, that story is often buried beneath layers of spreadsheets and complex datasets. For financial professionals, the challenge is not just about understanding these numbers but also presenting them in a way that drives decision-making and inspires action. Enter data visualisation – the art of transforming data into clear, compelling visuals. Among the tools that have proven especially powerful are the line graph and the waterfall chart. These visuals help finance teams translate dry statistics into impactful narratives. In this article, we explore how these graphs can transform financial storytelling. The Importance of Data Visualisation in Finance Finance professionals are accustomed to handling vast amounts of data, from profit margins and revenue growth to expense tracking and risk assessments. Yet, presenting these figures effectively to stakeholders is a different ballgame. Visualisation simplifies this process, turning complex data sets into accessible insights. When done correctly, data visualisation: Enhances comprehension: Humans process visuals 60,000 times faster than text, making it easier for stakeholders to grasp key information quickly. Drives decision-making: Clear and compelling visuals help executives make informed decisions without wading through dense reports. Highlights trends and outliers: Visual tools can bring hidden trends and anomalies to light, prompting timely actions. Improves understanding and communication with business - Business doesn't always get what Finance is trying to communicate and good visualisations go a long way to bridging the gap. Better communication improves alignment to strategic financial goals. The line Graph: Unravelling Trends Over Time The line graph, also known as a stream graph or a stacked area graph, is a powerful tool for visualising changes in data over time. It is especially effective in showing how multiple categories contribute to an overall trend. In finance, line graphs can illustrate revenue streams, expense categories, or investment performance in a visually engaging manner. Use Case: Revenue Streams Analysis Imagine a financial report for a company with diverse revenue streams, such as product sales, services, and subscriptions. A line graph can display how each stream has evolved, highlighting peaks and troughs. The thickness of each ‘line’ represents the contribution of that revenue stream to the total, making it easy to spot which areas drive growth. Benefits of line Graphs: Trends Made Simple: Displays how multiple components evolve over time. Visual Impact: The fluid, organic design makes it easier to follow changes. Comparative Insight: Helps compare different categories intuitively. The Waterfall Chart: Bridging the Gap Between Figures Waterfall charts excel at breaking down the cumulative effect of sequential data points, making them ideal for financial analysis. They help bridge the gap between figures by showing how individual elements contribute to a total. Commonly used in profit and loss statements, budget analysis, and variance reports, these charts provide clarity in understanding how specific actions impact the bottom line. Use Case: Profit and Loss Analysis A financial analyst preparing a quarterly report might use a waterfall chart to demonstrate how various factors—like increased sales, higher marketing spend, and cost savings—impacted net profit. The chart’s structure, with its clear progression from starting figures to the final result, makes it easy for stakeholders to follow the financial narrative. Benefits of Waterfall Charts: Clarity: Simplifies complex financial data by showing individual contributions to total figures. Transparency: Clearly distinguishes between positive and negative impacts. Decision Support: Helps executives understand the key drivers of financial performance. Choosing the Right Visual for the Right Data Selecting the appropriate visual tool depends on the story you want to tell: Use line graphs for illustrating trends across multiple categories over time. Opt for waterfall charts when you need to detail the step-by-step impact of specific factors on an overall financial figure. By mastering these tools, finance professionals can enhance their storytelling, transforming raw data into insights that drive strategic decisions. Conclusion: From Data to Decisions The ability to visualise data effectively is a powerful advantage. The line graph and waterfall chart are more than just visual aids—they are essential tools for financial professionals looking to make data-driven decisions that resonate with stakeholders. By adopting these techniques, finance teams can turn numbers into narratives that not only inform but also inspire action. In the end, the power of finance lies not just in analysing data but in presenting it with impact.
Financial KPIs Every CFO Should Track in 2025

Financial KPIs Every CFO Should Track in 2025

By Clerissa Holm • February 17, 2025
In the ever-evolving financial landscape of 2025, CFOs are tasked with navigating complexities ranging from global economic shifts to technological advancements. The ability to track and analyse the right financial Key Performance Indicators (KPIs) is no longer a luxury but a necessity. These metrics not only provide insight into an organisation’s financial health but also support strategic decision-making. Here are the top financial KPIs every CFO should prioritise in 2025: 1. Revenue Growth Rate Revenue growth is a clear indicator of a company’s ability to generate sales over time. This KPI allows CFOs to evaluate the success of business strategies and identify trends in market demand. Formula: Revenue Growth Rate = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] x 100 Why It Matters: Monitoring revenue growth helps CFOs assess performance against strategic goals and anticipate future cash flow needs. 2. Gross Profit Margin Gross profit margin measures the profitability of core business operations, excluding indirect costs like administrative expenses. Formula: Gross Profit Margin = [(Revenue - Cost of Goods Sold) / Revenue] x 100 Why It Matters: It reveals the efficiency of production processes and pricing strategies, enabling CFOs to identify areas for improvement. 3. Net Profit Margin While gross profit focuses on operational profitability, net profit margin considers all expenses, including taxes and interest. Formula: Net Profit Margin = (Net Income / Revenue) x 100 Why It Matters: A high net profit margin indicates strong financial health and the ability to manage expenses effectively. 4. Cash Conversion Cycle (CCC) The CCC measures how quickly a company can convert its investments in inventory and receivables into cash flow. Formula: CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding Why It Matters: In 2025, with supply chain disruptions and rising interest rates, efficient cash flow management is critical. The CCC helps CFOs identify bottlenecks and optimise working capital. 5. Operating Expense Ratio (OER) This KPI compares operating expenses to revenue, offering insights into cost management. Formula: OER = (Operating Expenses / Revenue) x 100 Why It Matters: Keeping operating expenses in check is vital for maintaining profitability, especially in uncertain economic climates. 6. Debt-to-Equity Ratio This KPI highlights the financial leverage of the company by comparing total liabilities to shareholder equity. Formula: Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity Why It Matters: With interest rates fluctuating in 2025, maintaining a healthy balance between debt and equity is crucial to avoid over-leveraging. 7. Return on Equity (ROE) ROE measures the efficiency of a company in generating profits from shareholders' investments. Formula: ROE = (Net Income / Shareholder Equity) x 100 Why It Matters: A strong ROE signals to investors that the company is effectively using their capital, which is vital for securing future funding. 8. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) EBITDA provides a clear picture of operational profitability without the influence of financing and accounting decisions. F ormula: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation Why It Matters: CFOs use EBITDA to benchmark performance against competitors and industry standards, making it a key metric for strategic planning. 9. Customer Acquisition Cost (CAC) As businesses invest in growth strategies, understanding the cost of acquiring new customers becomes crucial. Formula: CAC = Total Sales and Marketing Expenses / Number of New Customers Acquired Why It Matters: Tracking CAC helps CFOs ensure marketing spend aligns with long-term profitability goals. 10. Economic Value Added (EVA) EVA measures the value a company generates beyond the required return of its shareholders. Formula: EVA = Net Operating Profit After Taxes (NOPAT) - (Capital Employed x Cost of Capital) Why It Matters: EVA provides a holistic view of financial performance, emphasising value creation over short-term profits. Final Thoughts In 2025, CFOs must adopt a forward-thinking approach, leveraging advanced analytics and real-time reporting tools to stay ahead. By focusing on these essential financial KPIs, CFOs can drive strategic growth, ensure resilience, and foster long-term success in an increasingly competitive landscape. Tracking these metrics isn’t just about numbers; it’s about enabling informed decisions that align with the company’s vision and goals.