The rolling forecast emerged as one of the most effective ways to improve accuracy in the financial planning process, but due to inaccuracies caused by manual processes, many organizations found that establishing a rolling forecast was cumbersome and complex—leaving organizations just as unprepared as they once were.
Any strategy relies on assumptions. And assumptions come from a forecast. “How many orders in the next twelve months?” “How will changes in this line item affect the results in that one?” “What will things look like in a quarter? Two quarters? A year?” And so on.
The best route to precise forecasting is, hands down, the rolling forecast. This white paper discusses the ten best practices for creating a strong rolling forecast, including how to construct it, how to connect it with both strategy and operations, and how to use it as a powerful planning and management tool.
So what does it take to get the rolling forecast process correct? Technology, understanding, and strategy to name a few. Thanks to Host Analytics, we would like to share with you 10 top practices in developing rolling forecasts to understand your financials and plan for success.
- Ditch Excel: Excel is a personal productivity tool, not an advanced business planning, analysis, and forecasting software.
- Understand Objectives and KPIs
- Identify the Duration
- Identify the Forecast Comparison Periods
- Understand and Analyze the Dynamics of Revenue and Expense in your Business and Related Drivers
- Plan Capital and Strategic Projects Separately from Rolling Forecast
- Start with a small select group of key department/operations managers, plan on increasing the scope over time and plan on continual improvement over time.
- Consider a Rolling Forecast as a Baseline Plan.
- Tie Rolling Forecasts into Strategic Plan
- Analyze and Understand How External Conditions Impact Your Performance
How do you achieve these? Host Analytics recently shared a new whitepaper on how to use rolling forecasts to your advantage. Titled “Best Practices in Rolling Forecasts,” it shares an in-depth view of all of the aforementioned ten topics, as well as cautions and benchmarking initiatives.
Download the entire Best Practices in Rolling Forecasts whitepaper from the Host Analytics website here.
As a proud provider of Host Analytics Cloud Enterprise Performance Management Software, Brittenford Systems can help you decide, implement, and operate your EPM software for success. Learn more by checking out the related resources below, and contact us for more information.