Let’s face it – very few people actually like to budget or forecast. So, reforecasting may seem like a daunting task.
Why do organizations reforecast? Here are some things to consider:
- Alignment of Your Business
Especially in today’s turbulent economy, businesses change so quickly that forecasts created previously aren’t always accurate. In order to align your business with a more accurate projection, you may need to reforecast.
- Allocation of Resources
Further to the first point, understanding how your business is changing and what it will look like in the near future helps you allocate your resources. Reforecasting ensures you have the most up-to-date and accurate plan of where you allocate your most valuable resources.
The reforecasting process requires people to look at their forecasts again. Reforecasting – and identifying how close their initial forecast was to their actual results – helps improve accountability.
- Adapt to Change
Again, in a turbulent economy, reforecasting helps businesses see a picture of their business that’s more accurate. Therefore, businesses can pivot based on new information and adapt to changing conditions with a plan in place.
Are you reforecasting, or sticking to the once a year budget?