Projections in Bukers BTA - Part I
The projections module in Bukers BTA is a powerful tool that lets you select from 4 different projection methods and generate up to 5 years of projections for your borrower. You can generate an unlimited number of projections for each borrower. Once generated, you have the ability to customize the projection variables and change most of the projected balance sheet and income statement values. Best of all, they take a matter of seconds to generate!
In this 2-part article, we’ll show you:
Part 1: How to run a basic projection from start to finish.
Part 2: How to customize your projection.
Let’s get started!
Starting a Projection
To begin a projection, make sure you have your borrower file open, then click the “Projections” button at the top of your BTA screen. On the “List of Projections” screen click the “Add New” button, then type in a name for your projection. Since you can generate as many projections for your borrower as you’d like, you should give each projection a name that will help you identify it later. Click the “OK” button and the next screen will open.
Make Your Selections
On the left of this screen, you’ll see a list of the statements spread in your borrower file. Select the statements you want to use to generate the projected data. Next, select the projection method you want to use. A description of each method along with the number of historical statements needed are included on this screen.
The projection method choices are:
- Current Selected Historical Data
- Historical Average
- Weighted Average
- Exponential Smoothing
The final selection is for the number of periods you want to project out. Once you have made your selections, click “Next.”
Projection Variables
This will take you to the “Projection Variables” screen. This screen lists all the projection variables used to generate a projection. You will notice one section with a yellow background and one with a white background. The section with the yellow background shows the variables calculated using your borrower’s historical data. The variables in the white section are generated based on your historical data in conjunction with the projection method you chose on the previous screen. These are the variables that will be used to generate your projected balance sheet, income statement, and cash flow statement.
To move on to the balance sheet click the “Next” button.
The Projected Statements
Notice at the top of the screen there are buttons to switch between the projection variables, balance sheet, income statement, and custom cash flows.
Similar to the projection variables screen, the balance sheet, income statement, and custom cash flow screens all have a section with a yellow background and a section with a white background. The yellow section is your borrower’s historical data and the white section is the projected data based on your selections.
Generating Reports
Looking back at the top of the screen there is a button with a white sheet of paper and magnifying glass. This is the reports button. When you click on the reports button, you’ll see most of the same reports that you are used to seeing in the main BTA reports generator. These include all 6 cash flow reports, ratio reports, and cash driver adjustments. You can select the reports you want to see as well as designate which historical and projected years you want to include.
When you are done generating reports and are back to the main projections screen, you can either click on the “Finish” button at the top of the screen to save your projection, or “Cancel” which will not save your projection. Clicking either one of these buttons will return you to the “List of Projections” screen. Click “Exit” to return to the main BTA screen.
Next time we’ll talk about customizing your projections. As always, if you have any questions about using our software or would like to schedule a complimentary training session, please don’t hesitate to give us a call at (503) 520-1303.