Financial Management
Build a rolling driver forecast
What you will learn
Update a forecast using actual results and new assumptions.
Full-year forecast = year-to-date actuals + forecast for remaining periods
Keep actual periods locked and extend the forecast horizon as time moves forward. Estimate the remainder from operational drivers, including price, volume, staffing and capacity. Reconcile against the previous forecast and explain the material drivers to the decision maker. A fictional business records ₹42 crore through June and forecasts ₹50 crore for the second half, giving ₹92 crore for the full year.
A fictional business records ₹42 crore through June and forecasts ₹50 crore for the second half, giving ₹92 crore for the full year.
Keep actual periods locked and extend the forecast horizon as time moves forward. Estimate the remainder from operational drivers, including price, volume, staffing and capacity. Reconcile against the previous forecast and explain the material drivers to the decision maker. A fictional business records ₹42 crore through June and forecasts ₹50 crore for the second half, giving ₹92 crore for the full year.
Which inputs should stay fixed during an ordinary forecast refresh?