Maintaining A 3-Way Fathom Financial Forecast

The 3-way (profit and loss, balance sheet, and cash flow statement combined) financial forecast inside Fathom is a powerful tool to help navigate a business toward success.

Its power comes from its ability to update automatically as actual financial data becomes available month by month.

While the update occurs automatically we have found that it is worthwhile performing a service check on the forecast. A little like servicing a car every 10,000 kilometres, we tend to perform this check every business quarter. Usually this lines up with government reporting obligations, thereby locking down results, and creating a solid foundation to re-forecast off of. But a service check can also be performed at any time.

Internally we call this a Quarterly Business Review (QBR). What it involves is listed below. It is by no means an exhaustive list, and it continues to evolve.

Check tax settings
Check default accounts
Chart of Accounts review - sort alphabetically & allocate
Review Financial Adjustments inside Settings.
P&L check - results, assumptions, logic, maths & history
P&L check - payment profiles; assumptions, logic
Accounts receivable & payable drawdown assumptions
Balance Sheet - tax liabilities flowing
Balance Sheet - loan schedules
Microforecast check - timing, assumptions, maths & history (old? keep/remove)
Roll forecast back to start of the financial year and sense check rules have not started half way through
Notes - questions for us internally
Notes - questions for the client

Flowing through this checklist is everything we know and seek to learn about the client. What has worked (or not) historically? What investments do they wish to make? What are their goals etc..?

Usually we will work through several iterations of a forecast with a client to really understand and clarify their direction. Our mission here is to provide them with the clarity, conviction and confidence they need for the road ahead - short, medium and long term.