Efficiency: A Crucial Factor in Achieving Timely Forecasting
Financial forecasting accuracy is a high priority for CFOs, and doing it efficiently is ideal. However, when managers chase accuracy, the act of forecasting often causes them to alter their action plans, which alters their ability to track forecast accuracy. Forecasting well and forecasting quickly are often linked. Those who can do it quickly are most likely capitalizing on available technology and are able to produce mini-forecasts on demand. They are tracking key drivers and have established algorithms that allow them to pull a forecast at any time. They’re also tracking leading predictive indicators. It is important to understand that getting accurate information in a timely fashion is the difference between getting caught in a storm and being prepared for whatever conditions lie ahead.