Nothing impacts a company more than having a persistent budgeting and forecasting process. It provides a meaningful way to communicate about how decisions will likely impact a company’s customers, people, capital and systems; it builds trust with outside investors; and it helps hold inside managers accountable for their actions.
Forecasting is the highest function of the CFO
Most companies are driving while looking in their rear-view mirror. when the month is closed accounting starts on the next month never looking more than a month ahead.
If a company is moving fast, it will quickly run off the road and into the ditch at the next bend in the road. Meaningful forecasting helps a company to begin looking forward and identifies obstacles to growth long before they occur.
Forecasting is the highest function of the finance role. It is also one area where there is practically no training available. No CPA, MBA, CFA or any other designation teaches a financial person how to forecast. In the CFO’s heart, there is usually doubt and uncertainty about the forecast.
We build reliable, self-improving forecasts that help companies manage in times of rapid change.