A 3-Way Forecast is an integrated set of reports consisting of a Profit & Loss, Balance Sheet and Cashflow forecasts. These are separate reports in Calxa, but they all tie in together and balance based on the settings provided. 


Banks require a 3-Way Forecast for loan applications, and they commonly request updated quarterly and sometimes monthly reports for risk management purposes. The forecast isn't just for your bank, however. It should be an key part of your planning to build a picture of what will be happening in your business in the coming years. 


Your forecast will only be as good as the assumptions, settings and budgets that go into it, so it is worth taking the time to get it right. It's also important to review the forecast frequently and update it when needed to better reflect what you expect to see in the future. 


Budget and Settings

A good portion of your Cashflow and Balance Sheet Forecast is calculated for you in Calxa by using your Profit & Loss budget and the account and timing selections you make in Financial Settings for taxes like GST/VAT, PAYG and employee liabilities. 


Calxa takes the hard work out of predicting the timing of payments and receipts by analysing your current average Creditor Days and Debtor Days. You can then just add any other Balance Sheet budgets required (i.e. asset purchases, loan repayments) and your 3-Way Forecast will be ready to go. 


Click on the links below for information on how to create your:

  1. P&L Budgets 
  2. Financial Settings (Timing)  & Fine-Tuning
  3. Balance Sheet Budgets

Bundle the 3-Way Forecast

Use Calxa's pre-configured bundle kit called 3-Way Forecast to create your integrated reports. The Create a Bundle help note provides instructions.


Notes:

  • Each of the report types have longer date ranges available using other templates, up to 10 years annually.

  • The starting date for each report is set as Relative +1 to give you an integrated 3-way forecast for the future whenever you run it (P&L, Balance Sheet, Cashflow Forecast). The Bank Movement (12 Months) report begins from FY Start 1 and includes actuals YTD, with forecast for the remaining months.

  • For visual cashflow, include the Cashflow Forecast Chart (provides 1 year by month).
    • To compare two scenarios, have a look at the Cashflow Scenarios Line Chart.