How to do scenario planning?

Adapting to changes in the business world is essential, and scenario planning helps you prepare for what's ahead. This feature allows you to see how changes in key financial areas could affect your business's future.

Also, this will enable you to safeguard your business's financial health against future uncertainties. This dynamic approach allows you to test different scenarios and make informed decisions to navigate through various future possibilities effectively. Use this analysis to strategize effectively, aligning your business operations with future financial projections and market conditions.

This guide will walk you through the step-by-step process of how to create different what-if scenarios in your finances.

Steps for scenario planning:

You can set up various financial scenarios by adding multiple finance streams to your Revenue, COS, Expenses, and Working Capital. Then you can Include/ Exclude these streams via toggle on or off to simulate various scenarios and see the effects on your financials.

1

Open finance forecast module and here, generate the multiple finance streams tailored to different scenarios across key financial categories like Revenue, Cost of Sales, Expenses, and Working Capital.

2

Now, utilize the Include/ Exclude options available for each finance item to simulate different financial outcomes.

Adjusting these settings will instantly update your financial graphs and reports, allowing you to see the effects of these changes in real-time.

3

After setting up your scenarios, you have the option to export or download the finance reports specific to each scenario.

This enables you to effectively analyze and compare these different financial outcomes, helping you make informed decisions based on various potential future conditions.

By following the steps outlined, you can effectively use scenario planning to anticipate future financial possibilities. This approach helps ensure that your business remains robust under various potential outcomes, enhancing your strategic decision-making capabilities.