Produce Pro-Forma financial statements for new retail store openings

Description

These statements provide forecasts about revenues, expenses, profits and are based on assumptions and projections. By modeling these aspects in CPM software, retail chains can make informed decisions and plan appropriately for new store openings. This functionality requires that the tool allow for multiple alternative views of financial statements.

Example Use Case

Scenario: A retail chain is planning to open a new store. They want to understand the potential financial performance of the store before committing significant capital and resources to the project.

Solution: Using their CPM software, they model different scenarios such as high, medium, and low sales forecasts, and associated operating costs. The software generates pro-forma financial statements such as income statements, cash flow statements, and balance sheets. The results help the company make informed financial and operational decisions for the new store.

Considerations

Most products will include this by default as simply a forecasted financial statement. If you require a different presentation such as summarized accounts on the statement, make sure the system supports more than one view of the financial statements.

Questions to Ask a Vendor

• Scenario Modeling: Does your system allow for different scenario modeling for pro-forma financial statements? How easy is it to change the inputs and underlying assumptions?
• Financial Statement Views: How many different types of financial statements can we have? Are they all available with any version in the system?