Sales forecasting can be complicated, but it is invaluable. Good forecasts allow you to make more informed business decisions in regards to things like resource allocation or planning cash flow. However, in order to reap the benefits of a good sales forecast, it needs to be accurate. Here are some best practices you can take into account for your next sales forecasting period:
Consider how Frequently to Forecast
Most companies used to forecast annually, but more and more are adopting the practice of doing rolling forecasts on a quarterly or monthly basis. There are various reasons to make the switch to rolling forecasts, but it is up to you and your company’s needs. You can read our past blog on the pros and cons of rolling forecasts here. Whatever frequency you choose, ensure you commit to it for a period of time that is long enough to see if it works for you. If you find you aren’t getting your desired results, you can always readjust.
Keep things Simple
Don’t try to do too much at once. While it is desirable to track everything, it is not exactly realistic (or effective). Try focusing on 5-10 KPIs and then building your forecasts from those. You will be able to better analyze the chosen key metrics, and as a result, your forecasting will likely be more accurate.
Involve the Right People
If you are building a sales forecast, it makes sense to include people who are directly involved in the selling process. Their input can help improve accuracy of your predictions, or they can help with interpreting data such as client behaviour or competitor trends.
Consider Using Sales Forecasting Software
Automation software lets you save time on administrative aspects of forecasting, and allows you to have more time for analysis. Sales forecasting software can integrate into your various data sources and allow you to look at different metrics on your dashboards. With True Sky, you have the capability to do what-if scenarios. Our solution ensures your data is accurate so that you can compare forecasts or other data, side-by-side in detail. This can help you evaluate trends and make more informed business decisions.
Strong and accurate sales forecasts can help your business grow quicker and with greater effectiveness. To learn how True Sky can help you simplify your budgeting and forecasting process today, call us at 1 855 878 3759 or visit www.truesky.com