02 — Plan

Nobody funds a company that cannot forecast itself.

Clean books tell an investor you are competent. A three-way model that ties to those books, holds under scenario, and has been right before tells them you can be trusted with their money. This is the step between running the finance function and raising against it — and it is the one most companies skip.

Where this sits

Run, then Plan, then Raise.

The sequence is not arbitrary. Each stage is the input to the next, and skipping one is what makes the next one expensive.

01 — Run

Clean, current actuals

Five-day close, substantiated balance sheet, compliance filed. Without this, everything downstream is fiction with a spreadsheet attached.

02 — Plan

A model that ties

Three integrated statements, driven by operating variables you control, reconciling to the actuals every month. This page.

03 — Raise

Capital on your terms

Diligence tests the model harder than the deck. Preparation here is what converts into valuation there.

04 — Govern

Oversight that holds

A board that can read the forecast, challenge the assumptions and hold management to the plan.

Three-way forecasting

Profit is an opinion. Cash is a fact. A three-way model reconciles the two.

Most founder-built models are a profit and loss with a cash line bolted underneath. They cannot tell you what happens to your bank balance when debtor days slip by a week, or why a profitable quarter still consumed capital. An integrated model can, because the three statements are wired to each other rather than typed independently.

How a three-way model connects Operating drivers feed the profit and loss. Net profit flows to retained earnings on the balance sheet. Movements in working capital, capital expenditure and financing feed the cash flow statement. Closing cash returns to the balance sheet, which must balance — the integrity check that proves the model is wired correctly. Operating drivers — the only cells anyone should type in Volumeunits · customers Price & mixARPU · discounting Retentionchurn · cohorts Headcounthiring plan · cost Working capitalDSO · DPO · DIO Capex & fundingassets · facilities Statement 1 Profit & loss Revenue Cost of sales → gross margin Operating expenditure EBITDA · depreciation · interest Net profit after tax Statement 2 Balance sheet Cash · receivables · inventory Fixed assets · right-of-use Payables · accruals · debt Equity · retained earnings Must balance — every period Statement 3 Cash flow Operating — profit ± working capital Investing — capex · acquisitions Financing — equity · debt · leases Movement in cash Closing cash position NPAT Δ WC Closing cash returns to the balance sheet Integrity check — assets less liabilities equals equity, every single period What it produces 13-week & 12-month cash Runway & burn Covenant headroom Scenario range Funding need Teal = operating inputs · Plum = the three linked statements · Dashed = the return path
Fig. 1 — If closing cash does not flow back and the balance sheet does not balance, you do not have a three-way model. You have three spreadsheets.

Build standard

Eight rules we will not break.

A model that only its author can operate is a liability. These are the conventions that make ours transferable, auditable and survivable.

01

Inputs are separate and coloured

Every assumption lives on one input sheet, formatted so it is unmistakable. No hardcoded numbers buried inside a formula, anywhere, ever.

02

One formula per row

Copy right across the whole timeline without exception. The moment a row has two different formulas in it, the model has a bug you have not found yet.

03

Actuals and forecast in one timeline

Closed periods carry actuals from the ledger; open periods carry forecast. Variance is then a formula, not a monthly rebuild.

04

Checks that fail loudly

Balance sheet balances, cash ties to the cash flow, opening equals prior closing. A visible check row that turns red beats a quiet error every time.

05

Drivers, not growth rates

"Revenue grows 8 per cent" is a wish. "Sales hires × ramp × quota × win rate" is a plan you can manage against and an investor can interrogate.

06

Scenarios by switch

Base, downside and upside driven by one selector, not three saved copies of the file that quietly diverge after the second week.

07

Every assumption sourced

A note against each input saying where the number came from and who owns it. This is the first thing diligence asks and the last thing anyone documents.

08

Accuracy tracked against itself

We report how wrong the last forecast was, by line. It is uncomfortable, and it is the only way anyone learns how much to trust the next one.

Group & consolidation

One entity is arithmetic. A group is a discipline.

The moment you have a second entity — an Australian subsidiary, a property holding company, an employee share trust — forecasting stops being a bigger spreadsheet and becomes a structural problem. Most groups discover this during a raise, which is the worst possible time.

Entity-level, then consolidated

Each entity forecast in its own functional currency with its own drivers, then consolidated with eliminations — not a single blended model that no subsidiary board could ever sign.

Intercompany that eliminates

Management charges, loans, interest and transfers modelled on both sides so they cancel. If your consolidated revenue includes an intercompany sale, the diligence adjustment will be brutal.

FX handled properly

Average rate for profit and loss, closing rate for the balance sheet, translation differences to reserve. Forecast at policy rates with a sensitivity, not at whatever the rate was on the day you built it.

Cash where it actually is

Group cash is not one number. It is cash by entity, by currency, net of what is trapped by tax, thin capitalisation, minority interests or a lender's cash sweep.

Covenants at the tested level

Facilities test at a specified entity or sub-group. The forecast has to produce that exact perimeter, or your headroom number is decorative.

Segment view for the board

Directors govern by division and geography, not by legal entity. The same model has to slice both ways without a second build.

Trapped cash is the most common unpleasant surprise in a group forecast. The consolidated balance shows twelve million; the entity that needs to make payroll on Thursday holds four hundred thousand.

The planning rhythm

Forecasting is a cadence, not a document.

Weekly

13-week direct cash

Receipt by receipt, payment by payment, built directly rather than derived from profit. It is the only forecast granular enough to make an operating decision on — whether to take the discount, delay the hire, or call the facility. Rolled forward every Monday with last week's actual against last week's forecast shown side by side.

Direct method · By entity and bank account · Actual vs forecast variance
Monthly

Rolling 12-month cash

The horizon a board and a bank actually govern to. Twelve months forward, rolled one month every month so it never shortens, built from the same drivers as the three-way model rather than maintained separately. The 13-week view answers "can we pay for this"; the 12-month view answers "can we commit to this" — and they must reconcile to each other, which is the discipline most companies skip.

Rolling horizon · Reconciles to the 13-week · Base, downside and upside
Monthly

Re-forecast and variance

Actuals load, the model re-forecasts, and we write the commentary: what moved, whether it is timing or permanence, and what it does to the full-year landing point. The question is never "did we hit budget" — it is "what does this month tell us about the rest of the year".

Full-year reforecast · Variance bridge · Landing point
Quarterly

Scenario and stress

Base, downside and upside re-run against the drivers that have actually moved. Where is the break point on runway, on covenant headroom, on gross margin? A board that has seen the downside modelled before it arrives makes calmer decisions when it does.

Scenario switch · Sensitivity table · Break-point analysis
Annually

Budget and plan build

Bottom-up from the operating teams, reconciled to the top-down expectation the board and investors hold, with the gap made explicit rather than averaged away. Signed off, locked, and then used as the comparator all year rather than quietly revised.

Bottom-up build · Top-down reconciliation · Board approval

Business partnering

Finance in the room where the decision is made.

Reporting tells the business what happened. Partnering changes what happens next. It means a finance person sitting with the sales lead on pricing, with the operations lead on capacity, with the founder on the hiring plan — before the commitment, not in the variance report afterwards.

Commercial

Pricing & margin

Contribution by product, channel and customer. Which revenue is actually worth having, what a discount really costs, and where price can move without volume following.

Growth

Unit economics

Acquisition cost, payback period, cohort retention and lifetime value — defined once, consistently, so the number does not change depending on who is presenting.

Capacity

Operational modelling

Utilisation, throughput, headcount to volume, and the point at which the next fixed cost step has to be taken. Where finance and operations actually meet.

Investment

Business cases

A consistent appraisal standard for every material spend — payback, net present value, sensitivity and the honest downside — so proposals compete on merit rather than advocacy.

Working capital

Cash conversion

Debtor days, creditor terms, inventory turns and the cash release available inside the business before anyone raises external capital.

People

Incentive design

Targets and commission structures that pay for the behaviour you want and are affordable in the downside case as well as the base.

FinOps & transformation

The forecast is only as good as the operation feeding it.

If quoting lives in one system, delivery in another and invoicing in a spreadsheet, no model will ever be accurate — because the data arrives late, incomplete and manually re-keyed. Fixing the forecast usually means fixing the workflow underneath it.

Step 01

Map the flow

Quote to cash, procure to pay, hire to retire. Every handoff, every system, every re-keying, every approval that waits on one person's inbox. We time each step and cost the delay. Most businesses have never seen this drawn, and the first look is usually uncomfortable.

Process map · Cycle time · Cost of delay
Step 02

Fix the data at source

Automation on top of bad data produces wrong answers faster. Chart of accounts restructured, tracking dimensions defined, master data cleaned, and the system of record agreed for each fact — one place per number, no exceptions.

XL Standard chart of accounts · Dimensional model · Single source of truth
Step 03

Automate the mechanical

Invoice capture and coding, approval routing, bank reconciliation, payment runs, expense handling, revenue recognition schedules, intercompany journals. Supervised agents do the volume; a Chartered Accountant reviews the exceptions.

Xero · ApprovalMax · Hubdoc & Dext · payment rails · XLCFO OS agents
Step 04

Wire operations to the model

Pipeline from the CRM, usage from the product, hours from the delivery system, headcount from payroll — feeding the drivers directly. When operational reality changes on Tuesday, the forecast knows on Tuesday, not at the next month-end.

Live driver feeds · Automated reforecast · Exception alerts
Step 05

Redesign the team around it

Once the mechanical work is gone, the finance team's job changes and the structure has to change with it. Fewer processors, more analysts and partners. We rewrite the roles, the responsibilities and the calendar — and say plainly which positions the new operating model no longer needs.

Operating model · Role design · Capability plan
On the people question. Automation of this kind changes roles and sometimes removes them. We will tell you that directly at the diagnostic stage rather than discovering it at implementation, and we will help you plan the transition properly — including redeployment where the capability is there. Employment process is a matter for you and your employment adviser; we will not pretend otherwise.

What you get

Deliverables, not a workshop.

DeliverableWhat it isCadenceWho uses it
13-week cash forecastDirect-method receipts and payments by entity and account, with prior-week varianceWeeklyFounder, CFO, treasury
Rolling 12-month cash forecastTwelve months forward, rolled monthly, reconciling to the 13-week viewMonthlyBoard, lenders, founder
Three-way modelIntegrated P&L, balance sheet and cash flow, driver-based, scenario-switchedMonthly refreshBoard, investors, lenders
Consolidated group forecastEntity-level models with eliminations, FX and covenant perimeterMonthlyGroup board, lenders
Variance bridgeBudget to actual to reforecast, decomposed by driver rather than by accountMonthlyManagement, board
Scenario packBase, downside, upside with break points on runway and covenantsQuarterlyBoard, audit & risk
Annual budgetBottom-up build reconciled to top-down expectation, board approvedAnnualWhole business
Business case templateHouse standard for appraising material spend consistentlyOn demandDepartment heads
FinOps roadmapProcess map, automation plan, sequenced with owners and expected benefitProjectExecutive team

Included in the Control tier and above. Standalone model build and FinOps transformation are also available as fixed-price projects — see pricing.

Important. Forecasts are estimates built on assumptions that will not all hold. Nothing on this page is personalised financial advice, and no forecast we prepare is a guarantee of future performance. Investment, funding and structural decisions should be taken with your own legal, tax and regulated financial advisers.

Send us your current model.

We will stress-test it and come back with what breaks, what an investor will challenge, and what we would rebuild. No charge for the review.