Sometimes one needs to budget non financial items as these are drivers of financial outcomes and are therefore integral to budget and cash flow forecasts. With Visual Cash Focus the inclusion of non financial budget quantities is simple.
In all versions except the entry level “Standard” edition all budgeting and forecasting can contain both financial and non financial items.
Why budget non financial items?
Sometimes you wish to budget an account on some non-financial driver or measure. Examples: number of hotel rooms, tones of coal, number of clients serviced etc. These non-financial quantities do not appear on the financial reports, but can be used to calculate the budgets as they are drivers linking planned activities to financial results. For instance in a service industry type business the number of clients serviced could be the factor determining financial viability as a going concern. “What-is” scenarios with these drivers and resultant budget with cash flow forecasting can indicate requirements for breakeven and profitability. This provides additional flexibility for entering budget data.