Budget non financial items that are drivers of financial outcomes
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 that drives financial outcomes. These items are therefore integral to budget and cash flow forecasts. Examples: number of hotel rooms, tones of coal, number of clients serviced etc.
These non-financial quantities do not appear on the financial reports. However they 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 and cash flow forecast can indicate requirements for breakeven and profitability.
The inclusion of miscellaneous non financial items provides additional flexibility for entering budget data in Visual Cash Focus