“Planning and budgeting.” Quick, when you hear that phrase, what springs to mind? Perhaps you envision firing up trustly old Microsoft Excel? Then you open up last year’s budget workbook, change the column headers to next year, increase revenue and expenses by some historical growth percentage and — poof! — you’re done.
The thing is, this sort of basic forecasting is a poor substitute for proper planning, and you can really only make a good plan (and budget) with a driver-based financial model. “Drivers” are the specific actions you intend to take as a business owner that will increase revenue and/or expenses, such as selling new services and hiring more employees, not arbitrary month-over-month percentage changes.
In this session, we’ll build out a driver-based financial model for an accounting firm that plans to significantly grow their practice with new service offerings and subscription billing options, more than doubling headcount every year for four years. Is that sort of growth possible? The numbers have the answer! Whether you’re new to financial modeling, or you’re doing it now in Excel, this session will equip you with best practices to do better planning for your own firm and your clients.
Martin Zych is the CEO and co-founder of Jirav. He’s a career finance & accounting professional, specializing in high-growth tech companies. Previously he was the Finance Director at Limeade and Zephyr Health and a Controller at Atlas Accelerator CFO firm. Over his career, he set up dozens of finance functions and has helped raise over $200 million in funding. He founded Jirav to build the tool he wished he’d had available for him during his whole career as a Controller / Finance Director at high growth companies.
Blake Oliver, CPA, is an entrepreneur, accountant, writer, and speaker specializing in cloud accounting technology. In 2016 and 2017, Blake was named a “40 Under 40” in CPA Practice Advisor’s accounting profession. He is the co-host of the Cloud Accounting Podcast, a weekly news round-up at the intersection of accounting and technology that is also the #1 podcast for accountants and bookkeepers in the world.