Nowadays, making big decisions without the right data is risky and potentially costly. Still, we hear of executives who base decisions on gut feeling alone. But now that we live in more challenging times, you simply can’t make drastic decisions without facts and figures to back you up.
In finance, you need data and analytics to inform your strategy. Around 23% of CFOs today now believe in the power of big data and analytics to empower their forecasting, manage risk, and better understand the factors that can influence the future of their business.
In this article, we explore some of the best practices that businesses will need to adapt to improve their forecasting accuracy.
Simplify Complicated Processes
Contrary to what some may believe, you don’t need to overcomplicate your forecasting with too many projections. To improve accuracy, you can simplify your process, all while making sure your software is able to leave an audit trail, track the history of your forecasts, and align your data across your organization.
It’s important to note that keeping track of your daily numbers and ensuring they stay accurate goes a long way in better forecasting.
Modernize your forecasting capabilities with updated software
Today’s revenue models have become more sophisticated, which now requires more advanced management and measurement approaches to get the most relevant business metrics. To improve forecasting accuracy across your organization, you need an updated FP&A software like Performance Canvas Financials, which consolidates reporting, budgeting, and forecasting in one streamlined solution.
It also supports modern best practices that are useful for business today such as driver-based budgeting, what-if analysis, and live forecasting.
An organization’s ability to gather data and gain insights at the right time helps them prepare their strategy to adapt to any changes that may come their way, which can impact their bottom line.
Performance Canvas also supports better analytics capabilities to provide organizations with the information they need to make better business decisions from top to bottom.
Minimize Errors As a General Rule
Excel spreadsheets have been the go-to for accounting and finance. But they are prone to errors and inconsistencies which can make forecasting a pain. Spreadsheets are also inflexible and difficult to maintain over a period of time, especially as the numbers grow with your organization. If you’re set on getting better forecasting accuracy, you have to upgrade your financial planning and analysis software to one that is easily adaptable to your on-premise system.
Opt for Role-Based Security and Better Collaboration
Another way to drive better accuracy in forecasting is by adopting a more collaborative approach to data entry. Role-based security control can ensure there is a clear history and audit trail for those in the finance team. With Performance Canvas, CFOs can control what each user sees, and the administrator can easily view and edit what other users are allowed to view.
Modern organizations need to be more collaborative and when it comes to forecasting, being able to work fluidly with different teams such as marketing or sales plays a big role in an organization’s success.
Better Forecasting Accuracy with Performance Canvas
Amidst the current economic uncertainty, many organizations are still struggling to be more accurate with their sales or revenue forecasting. But the above best practices should help organizations review their current forecasting process and identify areas that can still be improved.
Organizations need reliable financial planning and analysis software that can help improve sales and drive better decision-making. Performance Canvas Financials is a safe bet, ensuring financial teams have the capabilities they need to improve their organization’s performance and inform better strategic decisions in these challenging times.
If you’re looking to transform your financial forecasting to adapt to the modern times, contact Performance Canvas today.