The Competitive Financial Forecast Model supports leadership conversations in identifying and setting Market Center budget goals for the coming year.  While one person, such as the MCA, may be responsible for entering the information, the Competitive Financial Forecast Model is a tool for the entire leadership team. Use the Market Center Multi-year Trends report to find key numbers that will need to be entered into the worksheet. 

• Access the KWRI 2026 Budget Model
• Access your Market Center Multi-year Trend Report

Once you have completed the worksheet, submit the goals to your Region per their guidelines. Once the Region has approved your goals, you will enter your budgets into AccountEdge/Lonewolf during the year end process.

Setting Your Budget

As you complete this worksheet, you may copy and paste values from one cell to another.

Step 1: Info Tab

Enter your Market Center Name and Number, then select the accounting package (accounting software) that you use for your Market Center (AccountEdge or Lonewolf). Entering the year you're budgeting for will set the corresponding columns in the Production and Budget tabs. 

Step 2: Production Metrics

1. Units:   
   Using your Multi-Year Trends (MYT) Report, enter the required information (make sure Actuals are selected under View Swap on the report).  For prior years, enter the number from the total column for that metric (Closed Units and Listings Taken). For the current year, using the YOY percentage (change view to Year-over-Year), project where you expect to end this year (Prior year Total increased/decreased based on YOY percentage for current year). 
   - OR - 
   For the current year, take the total actuals YTD and divide by the number of months included in the YTD total (for example, if you're looking at the MYT as of September month-end close, take the YTD total and divide by 9, for nine months). This results in a monthly average for the current year. Multiply this monthly average by 12 to get a total for the entire current year. 
   
   After that enter your goal for next year.
   
   
2. Average Price:
   Using your Multi-Year Trends Report, use the numbers in the total column for the given year and divide your volume (Closed Volume YOY, Listings Taken Volume YOY) by the units (Closed Units YOY, Listings Taken YOY) to determine average price.  Enter the calculated average in the designated cell.
   
   
3. Volume:
   This number is calculated based on units x average price.
   
   
4. Financial Metrics:
   Using your Multi-Year Trends Report, enter the requested percentages. GCI, Royalty and Company Dollar all have specific percentages on the Multi-Year Trends Report. To calculate the annual average for each metric, download the Multi-Year Trends Report to .csv (Select Data to Download - Market Center Multi-Year Trends YoY). Use formulas in the .csv to calculate the average percentage for each metric for the previous years. 
   
   
5. Financial Goals:
   These numbers are calculated based on your entries above. If you need to adjust your current year projected amount, review the following: 

• • Estimated units
  • Average price
  • One of the financial metrics

When adjusting these metrics, ensure the Market Center leadership has a plan to reach the goals being entered. This should be part of the Market Center's GPS for the following year. 

Step 3: Upcoming Year Budget (Budget Worksheet)

1. For last year (20XX Actual) enter the values based on your final Income Statement for the year. In AccountEdge, navigate to the Reports menu. In the Accounts tab, select Multi-Period Spreadsheet, and Customize. Select dates to include the entire year (1/1/XXXX - 12/31/XXXX) and change the Fiscal Year dropdown to the previous calendar year (Last Year FY XXXX). 
2. For this year (20XX Projected), use your most recent month-end close income statement plus the budgeted amounts for the remaining months.
   - OR - 
   For this year, take the total actuals YTD and divide by the number of months included in the YTD total (for example, if you're looking at the income statement as of September month-end close, take the YTD total and divide by 9, for nine months). This results in a monthly average for the current year. Multiply this monthly average by 12 to get a total for the entire current year. 

NOTE:  If you have concessions or E&O in your Cost of Goods Sold (COGS) section on your previous or current financials, add that amount to either listings commissions or sales commissions (or split evenly between the two) in the COGS section.  Company Dollar is the main goal, the sales data is there only for your accounting program to calculate out Company Dollar for your budgets.

3. Enter your next year budget amount for each expense account.

NOTE:  For any line item with an increase in the budget, the percentage change field will be red, decreases in budget less than 10% will be yellow, and decreases greater than 10% will be green. (Income accounts are the reverse, 10% increases in income will be green, etc.).