Looking for a comprehensive guide to ensure your financial report meets all the necessary criteria? This article outlines the minimum report requirements for financial planners, helping you create thorough and accurate financial reports with ease.
Overview
This document outlines the essential components required for creating a comprehensive Financial Planner Report. Your financial report is divided into several key sections, each focusing on specific financial inputs, cost inputs, budget inputs, scheduling inputs, partition design, and artifacts that detail the project’s financial and operational parameters. Below are the key components that outline the essential requirements for creating a precise financial report.
Minimum Requirement Settings Before Your Report:
Prior to creating and generating your report, it is essential to confirm that the following items are fully completed:
Bill of Materials
The Bill of Materials (BOM) counts and totals the network elements within the design. By establishing specific rules for counting these elements, FOND can generate a BOM with named and priced items. These costs serve as your estimation and planning tools.
To produce a report with meaningful values, it is crucial to input the unit cost for each line item in your BOM.
The report uses these costs associated with your network design to generate detailed projected cost breakdowns, including revenue, costs, NPV, IRR, and ROI, among other metrics.
Organizing the items in your Bill of Materials (BOM) will enhance the precision of your financial report, providing a more detailed overview of your project's financial aspects. To categorize your costs, you can divide the line items in your BOM into "Materials", "Labor", "Labor and Materials", or custom labels for greater transparency into why and how costs are accrued.
Cost to Serve
Configuring your BOM not only provides the metrics necessary to produce a financial report, but it also offers a detailed cost breakdown for each address, which is included in your report. The cost to serve examines the capital expenditure required for a network build and how these costs might be distributed throughout the design to create a cost profile that supports better decision-making. This cost assessment is specific to each address.
Costs from the Bill of Materials are applied to network elements and traced out to visualize high and low-cost areas.
Demand Model
Completing the Demand Model is crucial for producing an accurate Financial Planner report because it ensures the consistent and efficient allocation of fiber services to various locations based on their address types. This will enable you to specify the Average Revenue Per User (ARPU), the take rate, and the horizon value for each address type.
Minimum Requirement Settings Within Your Report
While creating and generating your report, it is essential to confirm that the following components are fully completed:
While these values are pre-set for convenience, it is essential to review and adjust them based on the specific requirements and characteristics of your project to ensure a more accurate and tailored analysis for informed decision-making.
- Default Subscriber Revenue Item: One of the foundational requirements is including a "Default" Subscriber revenue item, which stems from the Demand Model. This item should have at least one populated line item to provide a baseline for revenue projections.
Default Values
Below are some example default values that can be utilized in your report. These default values serve as a starting point for your financial planning report, offering guidance on how revenue is expected to be generated and distributed.
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ARPU (Average Revenue Per User):
- Default: $100/month (It may be more practical to consider a value closer to $75/month)
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Take Rate:
- Range: 0-50% with a suggested timeline of one year.
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Terminal Value:
- Default: $0
The deployment expansion rate is the [definition of velocity constraints] and you are required to input at least one of the following constraints:
- Fiber:
- Default: Unspecified
- Run Rate:
- Options can be specified based on either route feet or addresses, with a default setting of 10,000 feet per month.
- Service Locations:
- Default: Unspecified
- Total Budget Available
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- Default: Unspecified
These default values serve as a starting point for your financial planning report, offering guidance on key metrics. While these values are pre-set for convenience, it is important to review and adjust them based on the specific requirements and characteristics of your project. By customizing these default values to align with the unique aspects of your network design and financial goals, you can ensure a more accurate and tailored analysis for informed decision-making.
Preventive Measures:
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- If any necessary inputs are missing or incorrect, warnings will be issued to prompt users to review and correct the information before proceeding. This ensures that the financial report is based on accurate data and calculations, leading to a more reliable analysis and decision-making process. It is essential to address any warnings promptly to maintain the integrity and effectiveness of the financial planning report.