The financial goals and objectives for the professional service firm are determined by a profit plan. Computer spreadsheet programs such as Microsoft Excel® automate the planning and analysis process. These spreadsheets have powerful 3-D modeling and file linking capabilities. The CAPP spreadsheet models demonstrate the powerful planning and analysis capabilities of these spreadsheet programs. Graphic charts of important key indicators of financial performance are produced that translate financial data into meaningful information. These key indicators of financial performance are compared to firms of various sizes and the same firm from year to year. These spreadsheet models provide structure for the firm's strategic profit plan.
The following elements compose a strategic business plan for the professional service
firm:
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marketing plan,
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human resources plan (personnel plan),
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project delivery plan,
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financial plan.
The scope of this discussion is limited to the financial plan or profit plan goals and objectives. The objectives are the monthly periodic milestones on the way to the profit plan goal or target. The profit plan goals and objectives must have specific values. If the profit plan goals and objectives have specific values, they can be measured. If the profit plan goals and objectives can be measured, then the profit plan can be managed and controlled. The controller's job is to measure the progress toward the profit plan goals and objectives.
