CFO Journal: Financial Reporting Trends: Forecasting, Communication, Internal Controls
January 11, 2021
“While there is not a one-size-fits-all approach to addressing current forecasting challenges, the following strategies have proven to be effective for a number of companies:
- Evaluating recovery and financial forecasts from an outside-in perspective first—specifically, focusing on the factors, issues, and conditions outside of a company’s control that are known and knowable
- Automating components of forecasting to help remove bias and facilitate more real-time and frequent reforecasting as key drivers and trends change, while also analyzing data at a more detailed level
- Considering facts that both support and contradict assumptions regarding the company’s timing and pattern of recovery, sustainability, and growth.”