Your forecast is key to data-driven planning
Even though the budget might be prevalent in many companies, the forecast has the potential to gain significance for the business.
Forecasts are namely made based on the current situation, which is successively updated and adjusted.
It provides an actual insight into the nearest future of your business. And with that knowledge in hand, you can plan your activities within purchase, sales, operation, and production.
Does that mean I can work with both budget and forecasting at the same time?
You sure can.
And we even recommend it, as the two planning models each have their own strength.
The budget creates the financial targets for your strategic initiatives, whereas a rolling forecast can help you plan the operational activities.
For you as the financial controller it provides a strong hold of the financial management of the business, as you establish a distinct link between strategy, financial insights, and operational activities.
Moreover, it is an extremely agile solution, due to the successive adjustment of plans and efforts based on the predictions of the forecast.