EPM Buyer’s GuidePLANNING BUDGETING FORECASTING

Planning, Budgeting & Forecasting

Move beyond static budgets to rolling forecasts with driver trees, controlled inputs, and scenario toggles that connect FP&A to operations.

Key takeaways

Rolling horizons (12–18 months) beat point‑in‑time budgets.
Drivers make assumptions explicit and maintainable.
Contributor UX with validations prevents model drift.
Scenario toggles enable decision‑ready what‑ifs.

Model design

Separate structure (COA, org, time) from logic; keep cubes lean.
Drivers per revenue/cost stream (price, volume, mix, HC, rates).
Versioning: baseline, working, approved—visibility rules per role.

Operational inputs

Pipeline → bookings → rev‑rec; headcount with comp & vacancy logic.
Capex and depreciation schedules linked to cash and P&L.
Excel add‑ins/web forms with validations and audit trail.

Cadence & scenarios

Monthly rolling updates; quarterly re‑plan; locked/working copies.
Base/bear/bull; sensitivity sliders for rates and drivers.
Variance analysis with commentary tasks and materiality gates.

Pitfalls

Too many dimensions → performance hits; model bloat.
Uncontrolled sandboxing → version chaos.
Stale integrations → mistrust of numbers and rework.

Checklist

List top drivers and link to P&L/CF.
Define contributors/approvers & SLAs.
Agree on versions and naming conventions.
Set scenario defaults; wire variance workflow.
Connect ERP actuals and HRIS/CRM feeds.
Pick a pilot (e.g., opex + headcount).

FAQ

4–6 weeks with crisp scope and ready data; include training and variance review.

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