Service & Non Profit
How does a rolling forecasting apply to “service and not for profit” organisations?
In the current economic climate there are two key issues facing all “Service” and “Not for Profit” organisation’s. The first is whether forecast revenues will cover the expected service delivery costs and the second is whether the services provided are sustainable long term.
To aide planning and reporting ledger systems with multiple profit/cost centres are used to record revenues and related delivery and administrative costs for each service. Most include some budget holding capability but lack the ability to calculate a balance sheet and cash flows.
Whereas a modest spreadsheet will work well for many smaller organisations as they increase in size so does complexity. As complexity increased so does the effort to produce a reliable balance sheet and forecast cash flows. Reporting requirements including high level board, detailed management and grouped profit/cost centre area and responsibility reports add to the challenge.
Service based and “not for profit” organisations like Crown Forestry Rental Trust, Presbyterian Support (Eastern), Lifeline Auckland and The Royal College of General Practitioners are all diverse examples of how the Cash Focus “Service and Enterprise” editions meet their planning and management reporting requirements.