Banana Accounting provides a very advanced planning system based on the double entry accounting method.
The planning system:
- Uses the same chart of accounts as the accounting.
- Budgets and forecasts are entered via budget transactions entering, using the double entry accounting method.
- The reports can be obtained using data from the past, the present (registrations) and future (estimates) or via both (present and future).
- Starting out using the same data, the program is able to create forecasts of the balance sheet and the income statement. Forecasts regarding liquidity, assets and liabilities, the evolution of revenues, costs and the result for the year are therefore made available.
- The program is capable of projecting data over several years and creating budget and income statement financial forecasts for the medium and the long term.
This approach is much more efficient than using Excel, also the risk of errors contained in the formulas and differences between the different tables is eliminated.
The financial forecasting system based on the double entry method, lends itself very well to training on planning and on the Planning - Executing - Controlling methodology.