This software provides matrix-based responsibility distribution principle through the organization of horizontal (on budget items) and vertical (per responsibility centres/subcentres) planning.
Cash flow planning should be performed in financial responsibility centres in view of the operating budgets.
The software includes a combined approach to cash flow budget development of the company. First, such approach provides “bottom-up” planning and then results obtained should be checked for compliance with set goals. Should the company management recognize such results as unsatisfactory, the operating budget is subject to correction.
During “bottom-up” cash flow planning, budgeting should be performed basing on the company’s available resources.
When using the “bottom-up” approach, the first stage should include planning of financial results and the second stage includes determination of required intensity for use of the company’s available resources. In this case, it may turn out that achievement of goals set is physically impossible.