Accurate budgeting, planning and forecasting are essential for all levels of an organization to have confidence when making decisions and investments. While forecasts will never predict the future with 100 percent accuracy, finance teams can improve forecasts by updating them throughout the year instead of annually, as traditional annual budgets often become outdated by the time they're even approved.
According to a recent survey from Aberdeen Group, 71% of top performing organizations mitigate risks due to volatile business conditions by continuously updating forecasts to better reflect current business conditions, resulting in what’s known as a rolling forecast. Rolling forecasts allow companies to positively affect revenue growth and margins by being able to better estimate the impact of operational and financial drivers on the bottom line. It also presents an opportunity to quickly identify new market opportunities. While there is no one best practice for creating the most accurate rolling forecasts, there are five key components commonly found across organizations who successfully use rolling forecasts to plan.
Download this ebook and learn:
- Why top performing businesses use rolling forecasts
- Five components of accurate rolling forecasts
Visit the FEI Learning Center to download this ebook today.