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Jirav explores driver-based financial modeling software in new blog post

Austin, Texas-

San Francisco, Calif.-based Jirav posted a blog post about driver-based modeling. The Jirav team has established itself as a provider of growth-focused planning solutions for growing businesses, accounting firms, VC-backed companies and more.

According to “What is Driver-Based Modeling”, it is a forecasting and planning method in which the model takes into account key factors (or drivers) to create a realistic projection of the direction the company is taking. The model works by examining the operational links between several factors and how they affect various areas of a company’s operations. Instead of just focusing on KPIs, it allows business owners to focus on their input assumptions – and how changes to their assumptions affect their bottom line.

Although businesses can use Excel templates and spreadsheets, these can cause a number of issues. They are very flexible and can be used to create even the most complex models, but the problem is that they are not suitable for use in rapidly changing business environments.

According to the blog post, one of the most common challenges is that it is difficult to find and update key assumptions, which puts the model at risk of breaking when attempting scenario testing ( or even adding updates). On top of that, nested formulas and so on can pile up in multiple layers on top of a single assumption; the lack of integration with actuals makes comparisons between budget and actuals and updating forecasts very time consuming while adding risks in the form of errors. As such, the effort required to update models often results in organizations forgoing updating and losing key business information for long periods of time, and the fact that (most often) a single person will know how the model was built or how updating just serves to exacerbate these issues. While Excel templates tend to be great during the initial planning phase, Jirav says they quickly fail when trying to put them into practice to actually operate and measure the business.

The blog post also shares a case study preview to highlight the effectiveness of using financial forecasting and planning software over Excel templates and spreadsheets. Like most start-ups, ClosedLoop – a fast-growing venture-backed startup that provides a data science platform for the healthcare industry – initially used Excel for its financial planning, in hiring a part-time CFO who tracked growth and explored what-if scenarios in spreadsheets. But even with the part-time CFO running the sheets, ClosedLoop CEO and founder Andrew Eye worried about the fragility of their system.

“Our financial planning sheet was fragile. I was constantly terrified that someone could make a mistake in a cell and smash everything,” Eye said. “It was also almost impossible to compare scenarios. Comparing plans to actuals was a manual process that simply cannot be done easily or efficiently with Excel. »

However, when the part-time CFO left the company, ClosedLoop had to decide on a practical course of action. Their options were to stick with their model and hire a new CFO or find new technology, and they chose the latter, deciding to work with Jirav to get quick value while postponing hiring new people. a full-time CFO. Jirav’s drivers, engine, and flexibility helped ClosedLoop build its initial financial model quickly and in time to share it with board members at their quarterly corporate meeting. Cash flow forecasts, in particular, are valuable to ClosedLoop. Using Jirav’s pilots, they can model the effects of changes for a variety of departments, from staffing to revenue projections, building assumptions flexibly throughout the model. The full blog post on the Jirav website gives more details on the case study and more.

Martin Zych of Jirav says, “Jirav offers a cutting-edge solution that lets you combine data from multiple sources to assess where you’ve been and where you’re headed. With Jirav, you can project sales and revenue, forecast your cash flow, and plan your workforce all in one tool. You’ll save time and gain efficiency by reducing your reliance on complicated spreadsheet templates. Contact us to get started today.

Those interested in learning more about Jirav’s offerings, such as their financial scenario modeling software, can visit the company’s website. Interested parties can also get in touch with the company through the chat portal on their website. They are actively expanding their business and accepting new clients.

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For more information about Jirav, contact the company here:

Jirav
Martin Zych
[email protected]
25 Taylor Street, San Francisco, CA 94102, USA


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