A forecast is an important tool for businesses to understand what their business will look like in the near and far term. Creating a forecast is important but relies on the quality and accuracy of the data within it.
Three elements affect the quality of the forecast.
- People: who you involve, how much time you give them, and their accountability towards the budget all have major impacts on the quality of the forecast
- Data: the accuracy of your data – how much detail, where it comes from, and when the data is gathered – most definitely affects the quality of the forecast
- Process – developing a strong process, with clear guidelines on accessibility, security, visibility, and frequency, heavily impacts the quality of a forecast
Over the next three weeks, we’ll go in to more detail on each of the elements that affect forecast quality.