3-statement models that don't break when you change one number
Fully integrated P&L, balance sheet, and cash flow in Anaplan or Pigment. Working capital, debt schedules, and consolidation that hold when assumptions shift and actuals land. Not a spreadsheet running on iterative calc and good intentions.
Six core capabilities
A real integrated model is more than a P&L with a balance sheet bolted on. Here's the machinery that makes the three statements tie and stay tied.
P&L, balance sheet, and cash flow linked so net income flows to retained earnings and the sheet balances every period, with no plug holding it together.
- Net income flows to retained earnings automatically
- Cash flow ties to the balance sheet cash line
- Balance check that fails loudly, not silently
- No hardcoded plugs propping up the statements
AR, AP, and inventory driven by DSO, DPO, and DIO, so working capital moves with the business instead of sitting frozen as a static line.
- AR, AP, inventory driven by DSO/DPO/DIO
- Deferred revenue and ARR waterfalls for SaaS
- PP&E rollforward with depreciation schedules
- Accruals, prepaids, and deferred tax modeling
An indirect-method cash flow built from P&L and balance sheet movements, so cash is derived by the model, never typed in as a guess.
- Indirect method built from statement movements
- Operating, investing, and financing sections
- Free cash flow and levered views
- Cash derived from the model, not plugged
Revolver logic, term-debt amortization, and a cash sweep that handle the interest circularity properly, the part that breaks most spreadsheet models.
- Revolver draw and repay with a minimum-cash floor
- Term debt amortization and interest schedules
- Circular interest resolved without fragile iterative calc
- Cash sweep and mandatory paydown logic
Multi-entity roll-ups with intercompany eliminations and currency translation, so a group set of statements consolidates without a month-end spreadsheet marathon.
- Multi-entity and multi-currency consolidation
- Intercompany elimination logic
- FX translation with CTA tracking
- Entity, region, and group-level statements
Flip an assumption and watch it move through all three statements at once. Test downside cases against debt covenants before they turn into a phone call from the lender.
- Assumptions flow through all three statements
- Base, upside, and downside side by side
- Covenant headroom on leverage and coverage
- What-if on growth, margin, and financing
We've done this before
Both Anaplan AND Pigment
We build integrated statements in both. Anaplan carries the heavier consolidation and intercompany structures. Pigment moves faster on cleaner setups and SaaS metrics. We tell you which fits your entity structure instead of selling the one we'd rather build.
Our 3-statement implementation methodology
Current-State Audit & Discovery
We review your existing model, chart of accounts, entity structure, and debt and financing setup. We find where the current statements break or get patched by hand. That shapes the whole design.
Statement Linkage Design
We design how the three statements connect: working capital drivers, the depreciation and debt schedules, consolidation logic, and where the circularity lives. You sign off before we build a thing.
Data Integration Layer
We connect your ERP to feed actuals into all three statements, not just the P&L. Balance sheet and cash flow update from real numbers, so variance covers the whole model.
Build, Balance & Circularity Testing
We build the model and stress it: the sheet has to balance every period, the cash flow has to tie, and the interest circularity has to resolve cleanly under every scenario. This is the step spreadsheets skip.
Parallel Run & Validation
Your finance team runs the new model alongside the existing process for a cycle or two. We reconcile against known numbers, fix what surfaces, and build confidence before switchover.
Training, Go-Live & Ongoing
We train your team on the actual model, hand over documentation, and go live. We stay close for the first cycles, then refine and extend as the entity structure and financing change.
Common 3-statement problems we fix
Somewhere in the spreadsheet there's a plug labeled "difference" that keeps the sheet tied. It's hiding a real error nobody can find. We build the statements so they balance from the logic, and a balance check flags the moment they don't.
Interest depends on debt, debt depends on cash, cash depends on net income, net income depends on interest. Excel handles it with an iterative-calc toggle that corrupts the file and breaks under pressure. We build the loop to resolve inside the platform.
The cash flow statement is typed in rather than derived, so it doesn't move when the P&L or balance sheet does. We build an indirect-method engine off the statement movements. Change an assumption and the cash follows.
Every month someone combines entity files, keys in eliminations, and prays the intercompany nets to zero. We build the consolidation, eliminations, and FX translation once, so the group statements produce themselves.
Your ERP integration updates the income statement but leaves the balance sheet and cash flow stale. Variance is P&L-only and half the picture. We feed actuals into all three, so the whole model reflects reality.
You can flex revenue and see operating income move, but the balance sheet and cash impact never follow. That's not a real scenario. We make an assumption change ripple through all three statements at once.
What a typical 3-statement engagement looks like
Timeline
10-16 weeks
A single-entity integrated model lands at the shorter end. Multi-entity builds with consolidation, intercompany eliminations, and complex debt structures run closer to 3-4 months. Entity count and data quality drive the timeline more than the platform does.
Team Involvement
Your Controller and a technical accounting or FP&A lead join the discovery call and weekly standups. We handle the build. Your team validates the statements against known actuals during parallel run.
Deliverables
- Fully integrated 3-statement model (P&L, balance sheet, cash flow)
- Working capital, depreciation, and debt schedules
- Multi-entity consolidation with intercompany eliminations
- Automatic ERP actuals integration across all three statements
- Scenario and covenant testing
- Balance and tie-out checks built into the model
- Model documentation and team training
Post-Implementation Support
After go-live, we offer managed services for model evolution as your entity structure, financing, and reporting needs change. Most customers start at 10-20 hours a month and scale from there.