Inflation is something that affects us all, whether we own a business or not. The world’s economy can shift in an instant and when costs rise, it can put real pressure on personal finances. Brixx is designed to support you and your business. As a financial modelling and planning tool, it can help you to adapt to financial uncertainty with confidence. Read on to learn more.
Creating a financial forecast with no historical data is not about predicting the exact future. Instead, it’s about developing informed estimates based on research, business logic, and structured modelling. Learn more with Brixx.
We have created many informative articles exploring financial forecasting and business planning, and this time we would like to explore how to improve your business forecasts to make better informed decisions going forwards.
Having a business planning cycle helps your vision to keep on track, but what exactly is the process? Read more to find out how we manage it.
Without proper management of cash flow, a business simply cannot survive. In this blog, we will explore what cash flow forecasting is, why it’s important, and how you can create and automate your cash flow forecast to ensure your business’s financial health and success.
As a new business owner, there will be a variety of financial reports and terms that you may not be aware of. One such example is ledger balance and available balance, which we explore in this article.
The prudence concept is a core accounting principle that means choosing conservative methods to understate assets and overstate liabilities, anticipating potential losses and recognising them early, and only recognizing gains when certain – without estimations or presumptions.
The Sortino ratio is a risk-adjusted performance measure that is similar to the Sharpe ratio. Learn why it is important here with Brixx.
Year-over-year (YOY) is a financial term used to compare data for a specific period of time with the corresponding period from the previous year. It is a way to analyze and assess the growth or decline of a particular variable over a twelve-month period. Within this article we will explore what YoY is used for and why it is such an important metric for businesses.
Any investor with a genuine interest in the business will want to see detailed financial pitch deck slides to gain an understanding of the underlying assumptions driving the forecasts in your pitch.
For a lot of people, the balance sheet is one of the hardest financial statements to get to grips with. Even the most fundamental pillar of the balance sheet, why it needs to balance, eludes many of us.
The 13 week cash flow forecast is a tool for improving cash management in your business. Dedicating just a small amount of time to plan ahead can have great benefits and in this article we explore how you can take action now to avoid problems in the future.
This week, we’re looking at budgets and forecasts. Have you ever wondered what the difference is between a budget and a forecast? Or whether you need one or the other, or both? Find out the answers here.
A Present Value Table is a pre-calculated table used in finance that displays the present value factor for different combinations of interest rates and periods. It’s a useful tool for quickly calculating the present value of future cash flows without having to use a financial calculator each time.
In this post, we’ll briefly cover the types of commonly found business forecasts and why forecasting is so crucial for your business. As a financial modelling tool, Brixx can assist you in many of your forecasting endeavours.
Effective financial planning is absolutely essential for a business’ sustained success. One such tool that can help to empower your business is the 3-way forecast. In this article, we delve into the importance of a 3-way forecast, taking a look at its components, exploring its strategic applications, and highlighting its pivotal role in shaping a resilient and forward-thinking business strategy.
Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. This technique is used to evaluate the structure of individual financial statements (e.g., balance sheet or income statement) and makes it easier to compare financial data across different companies or time periods, regardless of size or volume.
The Price-to-Earnings (P/E) Ratio is a key financial metric used by investors and analysts to determine the relative value of a company’s shares. It indicates how much investors are willing to pay per dollar of earnings, offering a snapshot of market sentiment towards a company’s future prospects.
In this comprehensive guide, we’ll delve into the intricacies of the month-end close process. From understanding its importance to identifying the essential steps and best practices, this guide aims to be a road map for finance professionals. Whether you’re a seasoned accountant or new to the field, you’ll find valuable insights that can help you streamline your month-end activities.
Managing your business’ finances requires a firm grasp of financial concepts. One of these to be aware of is ‘net income.’ Whether you’re an individual striving to create a robust financial plan or a business owner aiming to assess your company’s profitability, understanding how to calculate net income is essential.
Cash collection in accounting is a crucial process that involves the retrieval of funds from various sources, typically including customers, clients, or debtors. Understanding how this process works is paramount for businesses of all sizes, as it directly impacts their financial health, liquidity, and ability to meet financial obligations.
Welcome to our comprehensive guide on understanding more about your financial health and how to assess your progress. Whether you’re a seasoned investor or just starting your financial journey, this guide will provide you with the knowledge and tools needed to evaluate your financial situation effectively.
Financial forecasting is a discipline shrouded in mysticism. How do people make predictions and why do people use it if they are never accurate? In this article we delve into these ideas and uncover why financial forecasting isn’t what you think it is.
Navigating the complexities of modern business requires a keen understanding of various financial metrics. One such vital tool is the Inventory Turnover Ratio (ITR), a standard gauge that evaluates how efficiently a business manages its inventory. In this comprehensive guide, we’ll peel back the layers of the Inventory Turnover Ratio, helping you to understand its formula, practical tips, and real-world examples.
In this blog, we will focus on Financial Planning & Analysis (FP&A), a critical element in business management that intersects finance, strategy, and decision-making.
The Rule of 72 is a fundamental financial concept that provides a quick and easy way to estimate the time it takes for an investment to double in value, based on a fixed annual rate of return.
Understanding how to budget effectively is crucial for any business. In this comprehensive guide, we’ll focus on static budgets—one of the most straightforward yet powerful tools in financial planning. From its definition and advantages to its limitations and practical implementation, we’ve got you covered. Read on to also discover how Brixx software can elevate your static budgeting process.
In this article in our series on the basics of Financial Forecasting, we take a look at how long your forecasts should be.
In this in-depth e-commerce guide we go into the steps and factors that contribute towards a cash flow forecast you can make solid decisions around.
This blog aims to inform you on the concept of a flexible budget, shedding light on its significance, the components, and how it empowers businesses to adapt to changing circumstances while maintaining financial control.
Capital budgeting enables informed decision-making regarding the allocation of financial resources for projects that contribute to the company’s growth and profitability in the long run.
Capital budgeting enables informed decision-making regarding the allocation of financial resources for projects that contribute to the company’s growth and profitability in the long run.
A break-even analysis is a critical metric for businesses as it provides valuable information about the minimum level of activity required to cover all costs. In other words, it helps businesses identify the level of sales required at which they neither make a profit nor incur a loss. This is the break-even point.
Whether you’re starting or you already have a clothing business, one thing which is often overlooked is the financial forecasting aspect of it. In this article I’m going to be covering how to create a cash flow forecast for a clothing business. I’ll cover the key areas with examples of their significance in a clothing business. Then, step by step, I’m going to build a cash flow forecast!
It is crucial to have effective financial planning for the success and growth of any organisation. To achieve accurate and insightful financial analysis, companies often turn to specialized software solutions. Two popular options in the market are Brixx and Poindexter.
In today’s competitive business environment, having robust financial planning software is essential for effective decision-making and long-term success. Two popular options in the market, Brixx and Futrli, offer comprehensive solutions to simplify financial forecasting, scenario planning, and analysis.
Scenario analysis is a technique used in various fields, such as business, finance, and risk management, to evaluate the potential outcomes of different future scenarios. It involves constructing and examining multiple possible scenarios to understand their implications and assess the associated risks and opportunities.
Financial forecasting & modelling is all about trying to predict the future of your business and sensitivity analysis is just a part of that. Something we’re pretty used to at Brixx!
In the realm of finance, liquid assets are the lifeblood of financial flexibility. In this comprehensive guide, we delve into the world of liquid assets, exploring their types, importance, evaluation strategies, and practical tips for maximizing their potential.
Sales forecasting provides valuable insights and predictions about a company’s future sales performance. This guide will help you understand the basics of sales forecasting, its importance, factors affecting it, the variety of forecasting models available, and how to create an effective forecast.
As we step further into the digital age, there’s a seismic shift reshaping how businesses handle their financial operations. One prominent force behind this transformative movement is the integration of Artificial Intelligence (AI), specifically Generative Pretrained Transformers like ChatGPT.
Accounting standards are a set of principles and guidelines that all accounting professionals and businesses must follow when preparing financial statements. In this comprehensive blog post, we will delve into the basics of accounting standards.
There are a huge variety of metrics that you will need to have understanding of when starting your own business. Return on Investment (ROI) is one of these metrics that we will be exploring today.
Understanding all elements of cash flow – including retained cash flow – can be quite a tricky task. We are here to help you understand more about how you can use it.
Debt factoring is a financial transaction in which a business sells its accounts receivable, or outstanding invoices, to a third-party financial company, known as a factor.
Debt factoring is a financial transaction in which a business sells its accounts receivable, or outstanding invoices, to a third-party financial company, known as a factor.
Risk-taking is an essential part of entrepreneurship, and it’s what sets successful entrepreneurs apart from the rest. In this article, we’ll explore why all entrepreneurs should take risks, the different types of risks businesses face, and how to manage risk effectively.
The debtor days formula is a useful tool for businesses to understand how long it takes to collect payments or debts. By calculating your debtor days, you can streamline your processes and improve your cash flow.
Understanding cash flow and the differences between cash inflow and cash outflow is critical for managing your business finances with confidence.
An aged debtors report is a financial report that shows the amounts owed to a business by its customers, classified according to the length of time that the amounts have been outstanding.
Over December 2022 and Early January 2023, we have released several updates and bug fixes to improve our user experience. Including the introduction of our Tax report, enabling you to view a breakdown of Tax payments for your plan.
Predictive analytics is the prediction of future trends and events using historical data, whereas forecasting is the process of making predictions about how your business will perform over the course of an extended period of time. Which is right for your business?
The integration between Brixx and Crunch means that you are able to visualise your company’s financial future and see the “big picture” Take a look at this Financial Forecasting Masterclass to see what this integration means.
A 3-Statement Financial Model is, in essence, a reflection of the three key financial statements. Forecasting those statements allows for the exploration of how a company will perform under a variety of different assumptions to help for growth planning.
A well-built 3-Statement Financial Model helps insiders and outsiders see how various activities of a firm work together to see how decisions impact the overall company performance.
A financial projection template is a structured format used to forecast your business’s future financial performance. This template typically includes various financial statements and metrics to help predict income, expenses, profits, and cash flow over a specific period. Learn more about getting started on your projections journey…!
All business owners should be using forecasting for one reason or another. Especially for e-commerce, business forecasting provides a tentative roadmap so you can make smarter, more informed business decisions.
Financial modelling helps businesses predict future outcomes. Using the right tools for this will aid in achieving success.
Deciding on the best financial forecasting method can be a challenge as there are two primary approaches to consider: top-down and bottom-up forecasting.
Numbers can be open to interpretation, especially if you’re not used to arcane accounting methodologies. Maybe you usually leave the numbers to the accountant, but if you’re a decision maker, then at some point you’ve got to figure out what it all means. So, today, I’m going to explain some of the common ways cash flow can cause confusion and how you can avoid it.
A cash flow statement brings order to the chaos. Our easy coffee shop example shows how this report can make it easy to understand your business finances. We go through line by line what it all means and where all the important numbers should sit.
To produce effective and accurate financial projections for startups, you will need three key reports: a Balance Sheet, a Cash Flow Statement, and a Profit and Loss Statement. Read more about these
