The business environment is always changing, often in ways that test your patience and make you question yourself as a business leader. Top decision-makers—CEOs, CFOs and FP&A professionals—face challenges in the best of times, but especially so now, with business conditions changing seemingly overnight.
We want you to excel—PowerExcel, if you will—through those challenges, not fear them. Once such way is to make use of rolling forecasts, so that a dynamic and collaborative (read: no emailed spreadsheets, no expanding SharePoint files) system can work as your guiding light for strategic decisions, enabling you to re-prioritize based on future risk. (For a good description of what a rolling forecast is, see “What is a Rolling Forecast”—including “Steps in Creating a Rolling Forecast.”)
There are many advantages to rolling forecasts versus a traditional budgeting system. Here are SIX rolling forecast benefits that explain how they can help you run your business and make decisions quickly.
They provide an accurate financial outlook.
A rolling forecast is the best way to stay up-to-date on variances, Actual v Budget and Actual v (current, future) Forecast. Optimally you can get a read on performance on a continuous basis.
They can be corrected at any time.
We all deviate from yearly budgets, so your forecasts should be as dynamic as the business conditions you find yourself in. Think of a rolling forecast as a way to take corrective action.
They help you seize opportunities.
Staying ahead of the competition—being as nimble as you can possibly be—is always a business priority. Seizing opportunities you had not foreseen in the past is as important as avoiding unexpected pitfalls.
They align with your business calendar.
Normal budgets are set too rarely: at the end of the accounting calendar, and so they become out of date by the end of it. You govern your own calendar of business activities with the help of a rolling forecast.
They are honest.
Decisions are data-driven, based on changing conditions, not hope: there’s nothing like cold hard facts to instigate one to act.
They create transparency.
Smart correctives—which can be made by business leaders and by individuals themselves—to employee performance is possible when that performance is examined regularly, over shorter intervals.
While we certainly can build a more detailed case about how PowerExcel can be the foundation of a highly responsive rolling forecast system, 3 characteristics stand out:
(1) With PowerExcel, your forecast plan model exists in the Cloud—with all metrics and calculations stored in a single, secure environment: no more emailed spreadsheets or cumbersome SharePoint models that slooow down how you respond to changing market conditions (not to mention the massive errors that are characteristic of such planning “systems”).
(2) A shared PowerExcel forecasting model in the Cloud can be changed at a moment’s notice—both “within” (changing or adding new premises, strategies and calculations) and “from without,” so that, say, weekly forecasting is as simple as entering new figures into user forecasting templates: the forecast updates instantaneously, and business leaders can act just as quickly.
(3) Your staff stays in the tool they are most comfortable with: Excel. PowerExcel works via a simple spreadsheet add-in—moments later, contributors are connected to the shared forecast model.
On this last topic: our PowerExcel experts can quickly convert your current cumbersome spreadsheet system into a working, Cloud-based forecast modeling system in very short time. And isn’t that what business leaders want from a forecasting system—implementing a solution that enables them to act in the shortest time possible?
Please free free to reach us asap about what PowerExcel can do for your firm: https://powerexcel.com/starterteamform/