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Budget Planning and Analysis

Our insights, tools and hands-on support help clients achieve their biggest goals

The Service

calcA budget is your company’s operational plan for the year expressed in numbers. Any activity that you plan to undertake (increase assortment, open a new shop, invest into a new manufacturing equipment, etc.) could be expressed in numbers. When you put together the numbers for all the activities – you get the budget and see the effect on your company’s financial results.

Our budgets might have similar designs, but the functionality is very different, as every client gets a unique tailor-made financial model. During our work we are able to deeply dive into the client’s business specifics to understand how the revenues are generated, how the variable costs are connected to sales and what are the key risk factors for the company. As a result every client gets a unique product that allows to model the effect of different risk factors on the company’s financial results.

Advantages

AG Capital budgets allow clients to quick get answers to questions like these:business-561388

• If our sales drop – how much will it hurt? How many costs shall we cut in response?
• Will we be able to absorb an increase in raw material prices or shall we start raising our sales price?
• Can we increase salaries without raising prices for our products?
• Are all our products expected to be profitable?
• How can we improve our financials?

AG Capital’s budgets are financial models that allow to easily change the key assumptions. For example, a wood-processing company’s COGS is very much dependent on the price of wood that could fluctuate a lot during a year. With just a couple of clicks our budgets allow to see how changes in the raw material prices affect the company’s profit and cash flow. Thus it is possible to easily develop and evaluate several scenarios for the next financial year and to prepare the contingency plan for the worst case scenarios well in advance.

Our budget performance reports are linked to ERP systems and are filled automatically. Usually it takes our clients not more than 5 minutes to get a budget performance report.

Prices
The full budget planning and performance analysis system costs in the range of 1500 to 3000 EUR (depending on the company size and complexity of business processes). As a result our clients get a clear view of how their decisions influence their company’s financials in the future. It is important to admit that the effects of these decisions are measured in thousands and millions euro. We highly recommend to invest a small amount of money into the budget to avoid very costly mistakes in the future.

In addition to that, while working on your budget, we are usually able to spot some ways to improve your financial performance, so chances are that we will be able to bring you a measurable direct ROI on your investment into the budgeting system even before it was launched.

If you’d like to learn how we can help your company to get a world-class budget – write us to info@agcapital.eu.

Demo
Here we reveal some of our files so that you are able to evaluate the functionality of our budgets.

icon-about-5 Budget Plan – demo