Rolling Forecast

There are two main problems that CFOs and their FP&A teams encounter – inaccuracy of the forecasts and the lack of corporate agility.

It is because of these two challenges that rolling forecast has gained ground. Rolling forecast is meant to address the very aforementioned issues. However, despite recognition by many mid-sized to large organizations of its ability to bring about a greater degree of accuracy and general corporate agility, less than 50% of companies use them today.

One of the speculations on why this is so is that most organizations consider rolling forecast as simply a rebudget and what that means for them is simply that they need to budget 12x a year which is a horrifying thought to say the least.

Organizations expect the entire forecasting process to be quick, self-managed, and accurate. It should be a process that allows them to propel the business forward and upward and it should allow them to identify risks and opportunities that are in the horizon.

Most companies struggle with forecasting because the process takes too much time to complete and the figures need constant verification which adds even more time to the already unnecessarily long process.

In order to ensure a successful shift to rolling forecasting, here are the three essential elements you should be aware of:

  1. Use a reforecasting model

In order to achieve a more prompt forecasting process, you must do away with the traditional templating and start using reforecasting models which uses business drivers and standardard costs so that you can calculate several key variables such as revenue, expenses.

  1. Incorporate and Automate

A reforecast is only relevant if it carries with it details that frontliners and managers in operations need daily. To achieve a successful rolling forecast, you need to use algorithms in the models so that all data inputted from the top can be automatically distributed below meaning down to products.

It is also important to use statistical functions so that the length of time needed to complete the entire reforecasting cycle can be reduced significantly.

  1. Use real-time What if modeling
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Moving to real time forecasting is the key now. It is therefore important that you have the ability to do what if modeling or what if analysis so that you and all the people involved in the planning do not have to deal with the problems associated when using spreadsheets.

Performance Canvas Best Practices in Rolling Forecasting

Performance Canvas is part of the new breed of software that believes in incorporating best practices in budgeting and forecasting in the software. To truly succeed in shifting to rolling forecasting, the most logical approach is to adopt a solution that can support all the essential elements you would need when reforecasting.

Performance Canvas can not only support large volumes of data and still maintain excellent performance, it can also do real time processing of information. It was also built with the goal of making it a tool that the finance department can manage easily even without technical know how. Lastly, Performance Canvas prides itself by using an intelligent and sensible workflow.

To know more about how Performance Canvas handles rolling forecasting and which best practices in forecasting it adopted in the solution, talk to one of our consultants for free by emailing or book a demo by visiting today.


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About DSPanel
DSPanel offers cutting edge technology platform for business analytics, planning, and visualization. DSPanel designs, builds, and operates with the end users in mind. Performance Canvas was created by DSPanel to answer the unarticulated needs of the market not addressed by previous available solutions. With Performance Canvas, information is transformed into valuable business insights for the business executives to utilize in their decision-making process. DSPanel currently has over 2500 organizations deploying their solutions.



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