Budget drawn up, already outdated? Rolling Forecast offers a solution!
It is well known that you can add the budget to your data model in Power BI. Even that you can add multiple scenarios. A high, medium, low scenario, in your P&L dashboard you can quickly and clearly compare the actuals compared to various scenarios.
You can also add multiple forecast scenarios to this. You can do this, for example, quarterly. Some business activities can be accurately predicted for an entire year, in which case a forecast has little added value (manufacturing industries with long-term contracts). For start-ups and scale-ups, a budget is already outdated at the end of January.
I personally like to draw up a new forecast every month. This is only possible if you do exactly the same thing every month. The advantages of this are that the finance team is trained to carry out these activities, no extra pressure on the quarterly and annual closing, and monthly forecasting does not have to be a difficult and lengthy process. In practice, it often turns out to be less time-intensive. You can also load this monthly forecast into Power BI. This way you can report on your last forecast in no time.
What helps when drawing up a monthly forecast is a good forecast model. Via this link you can see our demo dashboard and a working forecast model on the fourth page. By entering a number of important parameters you quickly gain insight into turnover. The parameters are continuously measured so that you can make an accurate assessment in the future and make the right strategic choices in terms of personnel, investments, etc.
I’m curious what you think of it.
Interested, want to know more or curious about what else we can do for you? Contact us email@example.com
Gino van Hameren
King Energy Officer @ Data Kingdom