Driver-based forecasting
Build accurate, responsive forecasts using key business drivers
It’s easy to build forecasts based on key business drivers if you know how.
We help you to choose the inputs that drive your business activity – from price and quantity, through to billable hours, head-count or even days worked.
We then use these drivers as the building blocks to forecast revenue, costs and the success of your business.
Prices change? More staff to hire? Updating your business drivers is simple and any changes we make automatically flow through to your forecasts and scenarios. Best of all there’s no need for spreadsheets!
Understanding the key drivers of your business helps you to have a greater awareness of business activity and to be able to forecast more accurately. Our challenge to business owners is to own the forecasting process, to work alongside your accountant and business advisers on the journey and have regular discussions.
The Driver-Based approach
We make it easy to create and update drivers to improve your forecasting efforts:
- The first step is to determine the key business drivers. What are the key variables that drive revenue, costs and the success of your business? Importantly, should these drivers play a key part in your forecasts?
- Once you’ve decided on your drivers relevant to your business, we build out your forecast or scenarios.
- Monitor and update drivers as required so you and we can understand the impact on profitability and cash flow for insightful and relevant decision making.
