How to Stay Certain in Uncertain Times

In recent months, we’ve seen a number of events which have provided businesses with more uncertainty than they would like.

Brexit is a good example. The pound hit a 31-year low against the dollar and some businesses even began to look away from London for a new base. Oh, and the UK’s trading arrangements with Europe, and the rest of the world, were also thrown into doubt, with the UK government now gearing up for potentially lengthy and complex negotiations. On top of that, throw in a host of unpredictable elections into the mix, in both the US and across continental Europe – and yes, even more elections in the UK too – for good measure…

It’s pretty easy to see why some organizations are feeling, well, less than certain when making decisions at the moment.

Despite this, businesses need to be able, and prepared, to adapt to the mutable economic and political climate. With so many uncertainties, now is a time when organizations should be able look to their financials, data and reports with complete confidence.

But, have you ever thought what were to happen if the models carrying your business-critical information were wrong? It’s more common than you’d think, with an estimated of 95% of spreadsheets containing some sort of error. Naturally most businesses like to think they’re an exception to the rule, but a simple Google search of “spreadsheet errors” tells another story.

The ability for businesses to be flexible and react to unexpected situations is crucial, and this includes the need to be able to rely on accurate, flexible and scalable financial models. The process of being able to model ever-changing scenarios – like Brexit and other political events – shows the need to produce flexible financial models. Despite this, many businesses are still reliant on 35-year-old technologies providing little flexibility.

The FAST standard for modeling is well known, and with the ‘F’ standing for flexibility, it’s clear many businesses are falling short of the standard. The ability to be flexible in your model build, whilst still being able to quickly and accurately add new scenarios, dimensions or outcomes means you can react to new market uncertainties, giving you reassurance in your forecasting and budgeting process – even in such uncertain times. All your financial professionals need? The right tool for the job.

Eliminate the uncertainty of having errors in your spreadsheets, eliminate the worry that you won’t be able to accurately forecast that new scenario and eliminate the risk of not being able to react fast enough.

If you want your modeling processes to be flexible, scalable and accurate, download a free 30-day free trial and explore the benefits of Quantrix Modeler or get in touch.

By Holly Perry 

Everyone’s thinking about your customers, but who’s thinking about you?

Whilst attending Finovate earlier this month, I noticed a lot of focus on consumers, as companies considered how to make previously tedious tasks simple for end users. Despite this, I couldn’t see how the back-office processes behind these offerings were being made any easier – it seems like the hard work behind the scenes still isn’t streamlined.

Although it was exciting to see how the future of Fintech is taking off rapidly, there must have been someone in the room who was wishing that their job of modeling the growth of these new technologies, sales and investments could be made easier?

As Greg Palmer said in his opening remarks – Fintech really is global (Region). Not only this, but the companies going through the launch process of either a new app or service offering, would have had to look at the timescales and finances against this to ensure success (Time). Additionally, there usually isn’t one idea on the table in development meetings – it’s usual for several variances to be considered (Products). It’s also likely many of these variables were backed by teams, external consultants or even investors (Personnel). When you then take a deeper look at the finances of the launch, including the income required to become profitable; the cost of sale; your outgoings and many more (Line Items), you can be faced with quite a complex array of scenarios.

The words in italics are not mistakes or even notes to remind me what to write. I wanted to highlight the fact the world we live in consists of many dimensions. There is huge complexity when putting these factors into a financial model using a traditional spreadsheet. Notice how, even with what could look like a simple project, I have easily outlined five dimensions of the model.

I believe that Quantrix really could be the missing puzzle piece for many innovative companies, like those who attended Finovate. Quantrix helps simplify, accelerate and perfect the modeling process behind the scenes as well as creating ‘what-if’ type analyses. Because modeling is now very multi-dimensional, we must adapt to the requirements of our users to make their lives easier. After all, who doesn’t want that?

If you want your modeling processes to be best-in-class, download a free 30-day free trial and explore the benefits of Quantrix Modeler or get in touch.

By Holly Perry