Income Statement planning is included for one entity
Description
Income Statement planning is an essential functionality that needs to be included in a robust Corporate Performance Management (CPM) system. This function allows for the detailed planning and forecasting of all income-related aspects for an entity. It enables organizations to plan for revenue, cost of sales, gross profit, operating expenses, operating income, non-operating income and expenses, and net income or loss.
Example Use Case
Scenario: A small-medium sized manufacturing company utilizes Excel for planning and budgeting purposes. Mapping and maintaining the Income Statement in Excel, along with the various formats requested by management, is time consuming and error prone.
Solution: The company purchases a planning tool that includes a fully mapped Income Statement out of the box. This feature empowers the company to efficiently plan and forecast for each manufactured product's revenues, costs of sales, gross profits, operating expenses, operating incomes, non-operating incomes, and expenses along with net income or loss.
Considerations
For this Small - Medium business requirement, we are seeking a vendor who can at minimum provide a pre-built Income Statement for a single business for both core financial reporting and the planning process. This should be somewhat standard across most systems.
Best case, that Income Statement can be broken down in other ways such as department, location, product and so on.
As a bonus, the Income Statement should show in different interfaces such as a sheet or formatted report. And an even bigger bonus, allow it to be used to generate variance reporting for budget vs actuals.
Questions to Ask a Vendor
- Inclusions: Is an Income Statement pre-built and included as a part of the product?
- Slice and Dice: Can we cut the Income Statement by different dimensions? Can we put it side by side and calculate variances?
- Adaptability: Can we render the Income Statement in different ways based on the audience?