AHQ Documentation

Appearance

Budget Generation ​

Generate comprehensive budgets powered by AI analysis of your historical financial data.

📖 Table of Contents ​

  1. Overview
  2. Before You Start
  3. Step-by-Step Guide
  4. Understanding the Questionnaire
  5. Reviewing Your Budget
  6. Regenerating & Refining Budgets
  7. Saving Your Budget
  8. Tips for Best Results
  9. Troubleshooting

Overview ​

The Budget Generation feature creates detailed financial budgets based on:

  • Your historical financial data (uploaded Balance Sheets, P&L, Cash Flow)
  • Your business goals and growth targets
  • Strategic context about upcoming changes
  • AI-powered analysis of trends and patterns

What You'll Get ​

  • Complete budget analysis with detailed explanations
  • Revenue projections broken down by category and time period
  • Cost forecasts for all expense categories
  • Cash flow projections showing timing and liquidity
  • Actionable insights and recommendations
  • Multiple scenarios (if requested) - best case, worst case, moderate

Time Required ​

  • Filling questionnaire: 15-25 minutes
  • AI processing: 30-90 seconds
  • Review and refinement: 10-30 minutes

Before You Start ​

Prerequisites ​

✅ Required:

  1. Upload financial data for at least 6 months (12+ months recommended)
  2. Have information ready about:
    • Revenue growth targets
    • Planned business changes
    • Known upcoming expenses
    • Strategic priorities

✅ Helpful to Have:

  • Last year's actuals for comparison
  • Board/investor KPI requirements
  • Current cash position and runway
  • Team hiring plans

Gathering Information ​

Before starting, prepare answers to:

  1. Growth Plans

    • Revenue targets (% or absolute)
    • New products or markets
    • Hiring plans

  2. Operational Context

    • Fixed vs. variable costs
    • Contract changes (leases, vendor agreements)
    • Payment terms with customers/suppliers

  3. Historical Context

    • Seasonal patterns
    • One-time items to exclude
    • Customer metrics (CAC, LTV)

  4. Strategic Direction

    • Conservative, moderate, or aggressive approach
    • Key milestones (profitability, runway, funding)
    • Non-negotiable spending areas

Step-by-Step Guide ​

Step 1: Navigate to Budget Generation ​

  1. Log in to AHQ Financials
  2. Go to Budget → Generate Budget (or similar navigation)
  3. You'll see the budget generation page with a questionnaire

Step 2: Complete the Questionnaire ​

The questionnaire is divided into 5 sections:

Section 1: Strategic & Growth Questions ​

  • Revenue growth target
  • Business changes planned
  • Funding runway and milestones

Section 2: Operational Context ​

  • Cost categories (fixed vs. variable)
  • Upcoming expense changes
  • Payment terms

Section 3: Historical Performance ​

  • Seasonal patterns
  • Unusual/one-off items
  • Customer acquisition metrics

Section 4: Budget Approach ​

  • Conservative/moderate/aggressive
  • Monthly or quarterly granularity
  • Single budget or scenarios

Section 5: Constraints & Priorities ​

  • Maximum burn rate
  • Non-negotiable spending
  • Key KPIs for board/investors

All fields are required - provide as much detail as possible.

Step 3: Generate Budget ​

  1. Review your answers for completeness
  2. Click "Generate Budget" button
  3. Wait 30-90 seconds - you'll see "Generating Budget..." message
  4. AI is analyzing your data and creating your budget

Step 4: Review Results ​

Your budget appears in 4 tabs:

  1. General Info - Full narrative analysis
  2. Revenue - Revenue projections with tables
  3. Costs - Cost forecasts with breakdowns
  4. Cash Flow - Timing and liquidity projections

Understanding the Questionnaire ​

Strategic & Growth Questions ​

"What's your revenue growth target?" ​

What to answer:

  • Percentage: "25% year-over-year growth"
  • Absolute: "Reach $500K monthly revenue"
  • Range: "15-20% growth depending on funding"

Example:

"We're targeting 30% revenue growth in 2024, driven by expanding
into two new markets and launching our premium tier. This assumes
we maintain current customer acquisition rates and increase average
deal size by 15%."

"Planned business changes?" ​

What to include:

  • New products or features
  • Market expansion plans
  • Hiring plans (roles and timing)
  • Operational changes
  • Technology investments

Example:

"We're hiring 2 sales reps in Q1 and 3 engineers in Q2. Launching
our enterprise tier in March. Expanding to Europe in Q3, which will
require 1 regional manager and increased marketing spend."

"Funding runway and milestones?" ​

What to answer:

  • Current runway in months
  • Key milestones (profitability, next funding)
  • Targets or constraints

Example:

"We have 18 months runway at current burn. Need to reach $100K MRR
by end of year to raise Series A. Board expects us to maintain at
least 12 months runway at all times."

Operational Context ​

"Cost categories: fixed vs. variable?" ​

What to specify:

  • Which costs stay constant
  • Which costs scale with revenue
  • Thresholds or step functions

Example:

Fixed costs:
- Office rent: $5K/month
- Base salaries: $80K/month
- Software licenses: $3K/month

Variable costs:
- Sales commissions: 15% of revenue
- Payment processing: 2.9% of revenue
- Cloud hosting: ~$0.50 per customer/month

Step costs:
- Add 1 engineer per 1,000 customers

"Upcoming expense changes?" ​

What to mention:

  • Contract renewals
  • Known price increases
  • Equipment purchases
  • Office moves

Example:

- Office lease renews in July, expect 10% increase ($5K → $5.5K/month)
- Software contract renews in March, negotiating 20% discount
- Purchasing $15K in equipment in Q2
- Annual conference in Q3: $8K

"Payment terms?" ​

What to include:

  • Customer payment timing
  • Supplier payment timing
  • How it affects cash

Example:

Customers:
- SMB: Paid upfront (credit card)
- Enterprise: Net 30, sometimes 45 days

Suppliers:
- Most vendors: Net 30
- Payroll: Bi-weekly
- Rent: Monthly, due 1st

Impact: Typical 30-45 day lag between revenue recognition and cash
collection for enterprise deals.

Historical Performance ​

"Seasonal patterns?" ​

What to identify:

  • Revenue seasonality
  • Expense seasonality
  • Timing considerations

Example:

Revenue:
- Q4 is strongest (holiday shopping), 40% higher than Q1
- Summer (Q3) slower, down 15-20%

Expenses:
- Marketing spend highest in Nov-Dec
- T&E costs higher in Q2 (conference season)

"Unusual/one-off items?" ​

What to exclude:

  • Non-recurring expenses
  • Unusual revenue
  • Items not to project forward

Example:

Exclude from projections:
- June 2023: $25K legal fees (one-time contract dispute)
- March 2023: $50K revenue from closed pilot program
- August 2023: $10K office setup costs (moved offices)

"Customer metrics?" ​

What to provide:

  • Customer Acquisition Cost (CAC)
  • Lifetime Value (LTV)
  • Trends over time

Example:

CAC trend:
- Q1 2023: $1,800
- Q2 2023: $1,500 (improved targeting)
- Q3 2023: $1,400
- Q4 2023: $1,200 (brand awareness growing)

LTV: $5,000 average (3-year retention)
LTV:CAC ratio: 4.2x (healthy and improving)

Budget Approach ​

"Conservative, moderate, or aggressive?" ​

What each means:

Conservative:

  • Lower revenue growth assumptions
  • Higher cost projections
  • Larger safety margins
  • Focus on profitability and runway

Moderate:

  • Balanced assumptions
  • Realistic growth targets
  • Controlled spending increases
  • Mix of growth and efficiency

Aggressive:

  • Ambitious revenue targets
  • Higher investment in growth
  • Scaling infrastructure
  • Focus on market share

Example:

Moderate approach. We want realistic projections that reflect
15-20% growth (not best-case 30%). Budget for necessary hires
but avoid nice-to-haves. Maintain 12+ months runway at all times.

"Monthly or quarterly granularity?" ​

Monthly:

  • Detailed month-by-month projections
  • Better for operational planning
  • More granular tracking

Quarterly:

  • Higher-level quarterly view
  • Good for strategic planning
  • Less detail, clearer trends

Example:

"Monthly granularity for Q1 and Q2 (we're planning several hires and
launches), then quarterly for the rest of the year."

"Scenario planning?" ​

Single Budget:

  • One set of projections
  • Simpler to manage
  • Based on most likely scenario

Multiple Scenarios:

  • Best case, base case, worst case
  • Shows range of outcomes
  • Better for fundraising/board

Example:

"Yes, provide 3 scenarios:
- Best case: 30% growth, all hires successful
- Base case: 20% growth, moderate hiring
- Worst case: 10% growth, freeze hiring in H2"

Constraints & Priorities ​

"Maximum burn rate?" ​

What to specify:

  • Monthly burn limit
  • Triggers for action
  • Hard vs. soft limits

Example:

"Maximum $60K/month burn rate. If we exceed $50K for 2 consecutive
months, we'll freeze discretionary spending. $60K is a hard stop -
would require cutting staff."

"Non-negotiable spending?" ​

What to protect:

  • Must-have costs
  • Capped spending areas
  • Investment priorities

Example:

Non-negotiable:
- Engineering salaries (core team of 5)
- AWS infrastructure
- Customer support (maintain 24h response time)

Caps:
- Marketing: Max 30% of revenue
- Office perks: Max $500/person/month
- Travel: Max $3K/person/quarter

"Key KPIs for board/investors?" ​

What matters most:

  • Growth metrics
  • Efficiency metrics
  • Milestone metrics

Example:

Board KPIs:
1. Monthly Recurring Revenue (MRR) growth
2. Customer Acquisition Cost (CAC)
3. LTV:CAC ratio (must stay above 3x)
4. Gross margin (target 70%+)
5. Monthly burn rate
6. Months of runway

Focus budget on improving CAC and maintaining LTV:CAC above 3x.

Reviewing Your Budget ​

Tab 1: General Info ​

What you'll see:

  • Executive summary
  • Key assumptions explained
  • Overall financial outlook
  • Strategic recommendations
  • Risk factors and mitigation

What to review:

  • Does this match your business context?
  • Are assumptions reasonable?
  • Are risks identified correctly?

Tab 2: Revenue ​

What you'll see:

  • Revenue projections by period (month/quarter)
  • Breakdown by category or product
  • Growth rates and trends
  • Assumptions about pricing, volume, etc.

Tables may include:

  • Monthly/quarterly revenue forecast
  • Revenue by product line
  • Customer acquisition forecasts
  • Pricing assumptions

What to review:

  • Are growth rates realistic?
  • Do seasonal patterns match your experience?
  • Are product mix assumptions correct?

Tab 3: Costs ​

What you'll see:

  • Cost projections by category
  • Fixed vs. variable cost breakdown
  • Hiring plans and timing
  • Operating expense forecasts

Tables may include:

  • Personnel costs by role/department
  • Marketing and sales expenses
  • Infrastructure and operations
  • General & administrative

What to review:

  • Are salaries and hiring timing correct?
  • Do cost assumptions match your plans?
  • Are variable costs scaling appropriately?

Tab 4: Cash Flow ​

What you'll see:

  • Monthly cash position
  • Cash inflows and outflows
  • Working capital requirements
  • Runway calculations

Tables may include:

  • Monthly cash flow statement
  • Beginning balance, inflows, outflows, ending balance
  • Cumulative cash position
  • Runway analysis

What to review:

  • When does cash position get tight?
  • Are payment timing assumptions correct?
  • Do you have sufficient runway?
  • When might you need funding?

Regenerating & Refining Budgets ​

When to Regenerate ​

  • Assumptions were off
  • You want to test different scenarios
  • Business context changed
  • Initial budget needs refinement

How to Regenerate ​

  1. Stay on General Info tab
  2. Locate the "Regenerate Budget" panel (below the main budget)
  3. Describe what you want to change

Example changes:

"Increase revenue growth target from 20% to 25% based on
strong Q1 performance"

"Add 2 additional engineers in Q2 instead of Q3"

"Make this more conservative - reduce growth assumption to 15%
and add 20% buffer to costs"

"Change to quarterly granularity instead of monthly"
  1. Click "Regenerate Budget"
  2. Wait for updated budget (30-60 seconds)
  3. Review the changes

Multiple Iterations ​

  • You can regenerate multiple times
  • Each regeneration considers:
    • Your original questionnaire
    • Previous budget
    • Requested changes
    • Your financial data

Saving Your Budget ​

Why Save Budgets? ​

  • Access later for reference
  • Compare different scenarios
  • Track changes over time
  • Share with team (future feature)

How to Save ​

  1. Click "Save Budget" button (top right when viewing budget)
  2. Enter a descriptive name

Good names:

"Q1 2024 Operating Budget - Conservative"
"FY2024 Growth Budget - Base Case"
"Board Meeting Budget - March 2024"
"Series A Fundraising - Aggressive Scenario"

Avoid generic names:

"Budget 1"
"New Budget"
"Test"
  1. Click "Save Budget"
  2. See confirmation - "Budget saved successfully!"
  3. Access later from Stored Budgets page

What Gets Saved? ​

  • Complete budget text
  • All parsed tables (revenue, costs, cash flow)
  • Original questionnaire (for regeneration)
  • Creation date and creator
  • Budget name

Tips for Best Results ​

1. Upload Complete Financial Data First ​

✅ Before generating:

  • Upload at least 6-12 months of financial data
  • Include Balance Sheet, P&L, and Cash Flow
  • More data = better AI analysis and projections

2. Be Thorough in the Questionnaire ​

✅ Provide detail:

  • Specific numbers and dates
  • Explain reasoning behind assumptions
  • Mention context and constraints
  • Include both quantitative and qualitative info

❌ Avoid:

  • One-word answers
  • Vague statements: "We'll grow" (how much?)
  • Leaving important context out

3. Start Conservative, Then Iterate ​

✅ First budget:

  • Use conservative assumptions
  • Include realistic constraints
  • Factor in risks

✅ Then:

  • Save the conservative version
  • Regenerate with more aggressive assumptions
  • Compare scenarios side-by-side

4. Use Business Language, Not Technical Jargon ​

✅ The AI understands:

  • Plain English descriptions
  • Business context
  • Strategic reasoning

❌ No need for:

  • Complex formulas
  • Accounting jargon (unless you prefer it)
  • Technical notation

5. Review and Validate ​

✅ Always:

  • Review all tables and numbers
  • Validate against your knowledge of the business
  • Check reasonableness of assumptions
  • Test sensitivity to key assumptions (regenerate with changes)

6. Save Multiple Scenarios ​

✅ Create and save:

  • Conservative case (for internal planning)
  • Base case (most likely scenario)
  • Aggressive case (for fundraising/board)

Compare them in Stored Budgets to understand the range of outcomes.

Troubleshooting ​

Budget Generation Takes Too Long ​

Issue: Budget processing seems stuck

Solution:

  • Normal time: 30-90 seconds
  • If over 2 minutes, refresh the page
  • Check your internet connection
  • Try again (your answers are saved)

Error: "Failed to generate budget" ​

Solution:

  • Check that you've uploaded financial data
  • Verify all questionnaire fields are completed
  • Try again (temporary issue may have resolved)
  • Contact support if error persists

Budget Doesn't Make Sense ​

Issue: Projections seem off or unrealistic

Solution:

  1. Check your questionnaire answers:

    • Are assumptions clear?
    • Did you provide enough context?
    • Are numbers accurate?

  2. Regenerate with clarifications:

    • "Make revenue projections more conservative"
    • "Increase cost estimates by 20%"
    • "Adjust for seasonal patterns I mentioned"

  3. Verify financial data:

    • Is your uploaded data accurate?
    • Does it cover the necessary time period?
    • Are there data quality issues?

Tables Not Showing ​

Issue: Revenue/Costs/Cash Flow tabs show "No tables found"

Solution:

  • This can happen if AI output format varies
  • The full text is still available in General Info tab
  • Try regenerating with: "Please include detailed tables"
  • Tables are parsed automatically when possible

Can't Save Budget ​

Issue: Save button doesn't work or shows error

Solution:

  • Check that you've given the budget a name
  • Verify internet connection
  • Try a different browser
  • Contact support if issue persists

Frequently Asked Questions ​

Q: How long does budget generation take? ​

A: Typically 30-90 seconds, depending on the complexity of your questionnaire and financial data.

Q: Can I edit the budget after it's generated? ​

A: Not directly in the app. You can export/copy the budget to edit in external tools, or regenerate with changes.

Q: How accurate are the projections? ​

A: Accuracy depends on the quality of your historical data and assumptions. The AI uses proven financial modeling techniques, but all budgets are forecasts and subject to business uncertainty.

Q: Can I use this for multi-year budgets? ​

A: Yes, specify the time period in your questionnaire (e.g., "Create a 3-year budget with annual granularity").

Q: Do I need to complete all questionnaire fields? ​

A: Yes, all fields are required. This ensures the AI has enough context to create a comprehensive budget.

Q: Can I export the budget to Excel? ​

A: Currently, you can copy and paste budget data. Future updates may include Excel export functionality.

Q: How many budgets can I save? ​

A: No limit. Save as many scenarios and versions as you need.

Q: Can I share budgets with my team? ​

A: Currently, budgets are accessible to all team members with appropriate permissions. Individual sharing features may be added in the future.

Example: Complete Budget Generation Flow ​

1. Preparation (15 minutes) ​

User prepares:
- Revenue target: 25% growth
- Hiring plan: 2 sales reps in Q1, 3 engineers in Q2
- Known expenses: Office lease renew +10% in July
- Historical data: Last 12 months uploaded ✓

2. Questionnaire (20 minutes) ​

User fills out all sections with detailed answers
about growth plans, operational context, and constraints

3. Generation (60 seconds) ​

AI analyzes financial data and creates comprehensive budget

4. Review (15 minutes) ​

User reviews:
- General Info: ✓ Good summary, assumptions clear
- Revenue: ✓ 25% growth trajectory looks right
- Costs: ⚠️ Engineering costs seem low
- Cash Flow: ✓ Runway looks good

5. Refinement (5 minutes) ​

User requests regeneration:
"Increase engineering salaries by 15% - we're in a
competitive market and need to offer above-market rates"

AI regenerates with adjusted engineering costs

6. Save (1 minute) ​

User saves budget as:
"FY2024 Operating Budget - Base Case with Market-Rate Salaries"

7. Scenarios (optional, 15 minutes) ​

User creates two more scenarios:
1. "FY2024 Conservative - 15% Growth"
2. "FY2024 Aggressive - 35% Growth"

Compares all three in Stored Budgets

Getting More Help ​

In-App Assistance ​

  • Ask the AI Assistant: "How do I generate a budget?"
  • The AI can guide you through the process

Documentation ​

Support ​

  • Email: info@ahqportal.com
  • Include your questionnaire responses and any error messages
  • We're here to help!

Pro Tip: Your first budget might take 30-45 minutes as you think through the questions. After that, you'll find the process much faster and the quality of your budgets will improve as you refine your approach.