Budgets & Financial Model automation

Optimise through automation!

One of the hardest challenges a fast-paced scaling start-up faces is the need to have Finance and Operational processes that are fit for purpose and continue to work as the business grows.

The key to optimising these processes is automation!

Financial modelling for a scaling start-up

One of our Partners at Quantico, who specialises in construction equipment rental, is growing at a rapid pace and was struggling with building out a financial model to keep up.

In order to build a strong financial model for their business, our team wanted to ensure that the solution would not just be a simple budgeting tool, but would also provide them with real-time reporting capabilities and the ability to track their progress against those budgets. They were using an Excel-based model that was difficult to manage and did not accurately reflect their current financial situation. Not only was the data in their budget out of date, but the format was different than what was coming out of their accounting software. As a result, it was difficult to track actual spending and revenue against projected figures.

Here's what we did!

With this goal in mind, we began by overhauling the financial model used for business planning and strategy. The best approach was to rebuild their financial model from scratch. We knew that we needed to have a lot of upfront conversations in order to really understand how the current model was operating; and what kind of short-term changes were being made that would impact the customer pipeline, customer database, and sales.

We integrated a software tool called Causal that helped automate some of the budget processes. With Causal, we were able to identify the true drivers of their customer pipeline and make better decisions about where to allocate resources. The end result was a much more robust and accurate financial model that saved our Partner time by identifying areas for key improvements going forward.

We selected Causal for a number of reasons, the main ones being:

  1. Integrates well with existing software (such as Xero) to easily pull up-to-date actuals
  2. Easy to model multiple forecast scenarios without complex formulae
  3. Links to Google Sheets (or excel if you are old school 😎) so you can link it to the current financial model in place
  4. It simplifies how you think about forecasting and models - using inputs and outputs as a guide

This was the result!

By using up-to-date metrics and focusing on the most relevant data in relation to their business goals, we were able to develop a more accurate model that would greatly improve their decision-making process. In the end, with a more efficient budget and financial model in place, our Partner is now better equipped than ever to drive growth and success in their business.

Building up a financial model can often feel like a painful, lengthy process. However, with the right tools and approach, it can actually be quite quick and efficient. For us, the main process involved in building up the financial model was building out the budget, which took about 10 days of work over the course of a few weeks. Once we had finalised the budget, we then integrated the model with Xero and set everything up as required. In short, by streamlining the financial modelling process with the right tools and approach, we were able to save time and get things done more efficiently.

But how did it help?

When the company first launched, the founder and CTO lacked adequate information about the data flows within the business. This made it difficult for them to fully understand where they needed to improve and optimise processes.

Overall, greater information for the founder was the key outcome of this project, as it gave them a better understanding of how their business functions and what steps need to be taken moving forward. This newfound knowledge not only benefited the founder and CTO, but also the entire team, ultimately leading to more streamlined operations across all areas of their business.

Want to improve your Financial Modelling?

Looking to grow your start-up but struggling with financial modelling and budgeting? At Quantico, we are a team of skilled FinOps experts who are excited to work with start-ups and help them scale.

Our comprehensive services cover everything from automation and forecasting to cost tracking, enabling you to focus on what really matters: driving innovation and growth in your business. If you are a rapidly expanding company trying to keep pace, our team at Quantico is here for you.

Contact us today and let's get started!