Tag Archives: Forecasting

The Total Cost of Effective Budgeting and Forecasting

Plans, budgets, and forecasts can be some of the most valuable contributions that finance makes to the business. Ideally, they help organizations know what’s coming down the road and remain agile enough to respond to uncertainty and to keep the business moving forward. The goal of these processes is to produce planning, budgeting, and forecasting […]

Bottom-Up Forecasting Can Enhance Your Top-Line Predictions

Financial projections are a fundamental component of the business plan and are important for many reasons. When it comes to developing financial projections, there are two options: top-down and bottom up. The more strategic option is bottom up forecasting, which is where the sales revenue estimates of each product or product line are combined to […]

Are budgets obsolete?

There isn’t a day that goes by that we don’t talk about budgeting with our customers and prospects.  And as you would expect, every one of those companies has a different perspectives on the importance of budgets and how to effectively manage them.  In CFO Magazine, Russ Banham’s article Let It Roll challenges the effectiveness […]

What does it cost us to produce this product?

Sound familiar?  This question is asked countless times by a variety of people inside a business – operations accounting, plant accounting, sales and marketing, and even research and development.  In most cases the answer is given as one general cost number derived from a universal standard rate and unit of measure within the business.  My clients with […]

Black Boxes: Great for Airplanes, Terrible for Forecasting

We’ve all heard of black boxes on airplanes that track critical flight data. Without discrimination, the black box records everything that is happening in the cockpit and on the aircraft. And in the event of an emergency, it’s up to the accident investigators to decipher the recorded data and put the pieces together to determine […]

How important is forecasting to the cost accounting function at your company?

Most people associate cost accounting with analyzing past events – calculating actual costs, analyzing yields and variances, and creating reports. More and more, companies are looking for ways to grow their cost accounting function to include predictive analysis to help with decision-making throughout the organization. How has the cost accounting function changed in your company? […]

Does your company use spreadsheets for your budgeting, planning and forecasting processes? Are you satisfied?

BPM Partners recently performed a survey of midsized enterprises to better understand their budgeting, planning and forecasting practices. According to the results, “Of the 138 survey respondents whose primary planning, budgeting and forecasting technology is spreadsheets, only 27% of respondents say their finance staff is “very satisfied,” as compared to 47% of those whose primary […]

Budgeting or Planning – Which is most important for your organization?

Steve Player recently penned the article “Going Beyond the Budget” for Business Finance Magazine, where he opined that companies must move beyond the budget and focus more on planning. His view is that “budgeting is about money, while planning is about things – units sold, headcount required, truckload shipments, and so on. Budgeting sets limits; […]