With the seasons changing and new year approaching, you’re probably thinking of some new year’s resolutions to help better yourself and your business. In accounting and finance, one of the most important things that change regularly are your numbers. And as such, business decisions may change as well.
For many years, annual budgeting was the norm for companies, and it worked well. However, with business changing at a more rapid pace now, numbers from annual budgeting become outdated much quicker. To meet changes head on and have more accurate information in budgets and forecasts, companies are choosing to move towards adopting quarterly or rolling forecasts.
If you’re hesitant to do so and unsure of how this may affect your business, here are some tips to make the switch easier on everyone involved:
Communicate Clearly and Ahead of Time
First, explain why your organization has chosen to make this change. Identify and highlight how this will help reach business goals, and provide your employees with any necessary training.
Ease into It
Change is never easy, and implementing rolling forecasts can be somewhat challenging at first. Begin doing so in a few smaller departments so that you can iron out any kinks. Then, once you feel you have everything under control, you can move onto implementing it within other larger (and finally all) departments of your organization.
Write out Processes and Maintain Consistency
Once you have completely implemented rolling forecasts, ensure your employees are consistent in its use. Having the same processes and timelines across departments will help keep things running smoothly and will provide lasting results.
Let Technology be Your Friend
Often, companies relying entirely on Excel run into a variety of problems when building their budgets and forecasts. Although it is a powerful tool, it has its limitations. Consider using a corporate performance management system to help automate your forecasting and to make things easier for your finance/accounting team.
At True Sky, we can help you make the change from annual to rolling forecasts seamlessly. Let us help you succeed in the new year. Call us today at 1 855 878 3759 or visit www.truesky.com for more information.