Modern small and medium-sized businesses are increasingly faced with the need for accurate financial planning. Rising costs, changing demand, tax burdens, and intense competition require not just considering past data but also fully forecasting future results. In these circumstances, tools that enable a systematic approach to financial management are especially important.
One such solution is Finoko—a platform for financial modeling, forecasting and planning software, focused on European small and medium-sized businesses.
What is Planning & Forecasting
Planning & Forecasting is a continuous financial management process that integrates the planning of revenue, expenses, investments, personnel, and business development scenarios.
Unlike a static annual budget, this approach allows for regular forecast updates, comparisons with actual results, and adjustments to management decisions before changes impact financial performance.
Why does a business need financial planning?
Financial planning and forecasting software helps management answer key questions before decisions are made:
- Can we afford new investments?
- What will happen if sales fall short of the forecast? How will salary increases impact profits?
- When will additional funding be needed?
- Which departments require enhanced control?
Without a structured approach, such issues are often resolved intuitively, increasing financial risks.
The Problem of Disparate Excel Models
Many companies continue to use Excel for planning, but this leads to a number of difficulties. Different departments work with different versions of data, leading to confusion in the figures, and time-consuming consolidation.
This is especially critical for European SMBs, where inflation, tax changes, currency fluctuations, seasonality, and supplier conditions must be taken into account.
How Finoko is Changing the Planning Process
Finoko helps companies move from disparate spreadsheets to a unified financial modeling system. All assumptions and calculations are collected in one place, making the process transparent and manageable.
The system allows for forecasting, comparing scenarios, and tracking deviations between planned and actual data. This makes financial planning not a one-time task, but a regular business process.