Automated Forecast Model: Rolling Forecast
Budget already outdated? Rolling Forecast to the Rescue!
It’s widely known that you can add your budget to your data model in Power BI, and even include multiple scenarios. With a high, medium, and low scenario, your P&L dashboard can quickly and clearly compare actuals against various scenarios.
You can also add multiple forecast scenarios, such as on a quarterly basis. Some business activities are predictable for an entire year, making forecasting less valuable (e.g., manufacturing industries with long-term contracts). However, for start-ups and scale-ups, a budget may already be outdated by the end of January.
Monthly forecasting
Personally, I prefer creating a new forecast every month. This is only feasible if you close each month in exactly the same way. The benefits of this approach include a finance team that is well-trained in these tasks, reduced pressure on quarterly and year-end closings, and the fact that monthly forecasting doesn’t have to be a heavy or time-consuming process. In practice, it often turns out to be less time-intensive. You can also load this monthly forecast into Power BI, allowing you to report against your latest forecast in no time.
Forecast model
What helps in creating a monthly forecast is a solid forecasting model. Through this link, you can view our demo dashboard, and on the fourth page, you’ll find a working forecast model. By entering a few key parameters, you quickly gain insight into revenue. These parameters are continuously monitored, allowing you to make accurate future projections and make the right strategic decisions regarding personnel, investments, etc.
I’m curious to hear what you think.
Interested, want to learn more, or curious about what else we can do for you? Contact us via info@datakingdom.nl
Gino van Hameren
King Energy Officer @ Data Kingdom
