Business Success via Rolling Forecast
You have just completed 2 months of operations. You need do a forecast for how next 10 months’ performance would look like in order to know how your fiscal year is going to end. We CFO call this Fcst 2+10.
You have just completed 6 months of operations. You need do a forecast for how next 6 months’ performance would look like in order to know how your fiscal year is going to end. We CFO call this Fcst 6+6.
This kind of forecasting is called “Rolling Forecast”.
If the actual months which have past have under-performed, it means you need catch up on the remaining forecasted months in order for your whole fiscal year to still hit your full year KPIs !
Business owners who are attuned to doing Rolling Forecasts every month are more in touch of their respective businesses, and hence higher chances of success in their businesses.
Actions to Catch-up can then be brain-stormed, and buy-in of all staff can then be obtained to ensure achievement of whole year’s Budget which was set out earlier in the year by the Business Owner.
Rolling Forecasting is a very powerful tool to appreciate your Past performances, and using Learnt outcome to better manage your future in your business.
Numbers never lie.
So, if you are not already doing so, starting tomorrow, please use numbers to better appreciate and better manage your business.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
