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What software or service do startups use for cost projections?

Matt Treat's Profile


Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |

Matt: do you mean budget/planning, BOM analysis, or FP&A type projections?
FP&A you might try; that can give you some planning insights.
B&P typically they're in whatever GL module you're using.
BOM analysis Excel works just fine.
I'm guessing you need something deeper?

Robert Honeyman
Title: CFO
Company: Advanced Predictive Analytics
(CFO, Advanced Predictive Analytics) |

Typically, start-ups lack cash to burn. Excel is the tool of choice. Of course, it's like anything else. If you're not expert at Excel and at forecasting, don't expect a scalable output. I'm happy to discuss if you need more help.

Kirsten Clark
Title: President
Company: Professional Small Business Management, ..
(President, Professional Small Business Management, Inc.) |

I prefer to use a Cash Flow Projection Excel spreadsheet. This allows you to plan ahead and adjust accordingly the revenue and expenses you anticipate you will have. I suggest that you plan in detail your first year and make sure you track and adjust as you go along.

Topic Expert
J.D. Floyd
Title: Owner, CFO
Company: CFO Outsourcing Solutions, Inc.
(Owner, CFO, CFO Outsourcing Solutions, Inc.) |

One word; "Excel".

J.D. Floyd

Topic Expert
Edward Abbati
Title: Vice President of Finance
Company: Location Labs
LinkedIn Profile
(Vice President of Finance, Location Labs) |

Ditto, Excel

John Argo
Title: Consultant
Company: Independent Advisory Services
(Consultant, Independent Advisory Services) |

Agreed: Excel. There are always operating plan templates floating around, some good, some simply pretty. The useful thing about building from scratch in Excel (after you've looked at some instructive examples) is that it forces an entrepreneur to take a disciplined look at both cost and revenue drivers. The exercise of building a bottom-up model helps quickly find the most influential variables in the mix, which often are not what is expected, and the next ten important variables that are impossible to capture with some of these simplifying tools. Tedious, no doubt, but cheap and requires real pencil sharpening to get right, so the exercise.

Mark Matheny
Title: VP - FInancial Planning and Analysis
Company: Novolex (formerly Hilex Poly)
(VP - FInancial Planning and Analysis, Novolex (formerly Hilex Poly)) |

And again: Excel.

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

You will get the most versality with an excel model. Just remember that modeling is an art, not a science. I recommend you bring someone in to create a custom model to your specifications. The process is just as important, as the output.

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