As is typical for January, predictions for 2022 are pouring into our newsfeeds. The pandemic has proven that uncertainty and unknown factors can dramatically impact the world around us. So it’s a wonder that annual forecasting is possible for businesses.
We’re starting to see experts anticipate:
- Change in interest rates,
- Speculations on the housing market,
- Predict continued cryptocurrency growth,
- Estimate gains for equities,
- And more!
Businesses face this annually as their company sits down to forecast the coming year. How do you forecast the year effectively to create solid and attainable predictions for revenue, sales, demand generation, and new-client onboarding?
If you (like many others) became overwhelmed and pulled together a minimal forecast for 2022, it’s not too late. Create a more robust prediction for the coming months by following these three tips. You will be able to more effectively create a tangible and accurate forecast.
Continually Track Data
When it’s time to crunch numbers, it’s vital you have an accurate look into all the metrics of your company (like sales numbers, time to value, ROI, etc.). The most effective annual forecasts are based on data that’s accurate and relevant. You want to eliminate the need to rely on guesswork.
Using a system that automatically collects data on a regular basis can save so much time.
For example, revenue that’s been successfully onboarded as well as projects that are late or placed on hold are details all captured through our intelligent forecasting algorithm. Those reports are generated automatically, so you don’t have to pull imperfect data together in spreadsheets and emails.
Think Weekly, Then Annually
It can be daunting to sit down at the beginning of the year, thinking about extrapolating data for annual forecasting.
When setting lofty goals, whether for your company or your personal life, we often recall the saying, “How do you eat an elephant? One bite at a time.” The same theory applies to creating an annual forecast. Rather than getting overwhelmed by an entire year’s worth of information, break it down into smaller bites.
“I encourage people to, on a weekly basis, keep track of revenue and expenses; on a monthly basis, update the annual forecasting for the current year; and, on a yearly basis, update the three- and five-year outlooks,” says Clare Levison, CPA and member of the American Institute of Certified Public Accountants Financial Literacy Commission.
Utilize Tools Designed for Forecasting
Having an advanced intelligent algorithm can help you predict the end dates for projects and goals. That’s not something spreadsheets can do. So much manual labor goes into calculating averages for different teams, types of projects, and client onboarding. If you’re already behind in annual forecasting, the last thing you need to do is spend time manually calculating these numbers to your own company.
“If you’re running an onboarding team, [forecasting] is the data you need to see,” says Harris Clarke, Chief Operating Officer at GUIDEcx. “The goal of these reports is to shorten the gap between insight and action, helping you not only see what needs attention, but quickly act on it as well. Now, with GUIDEcx you not only have a purpose-built tool for onboarding your new customers, but you also have standard metrics and forecasting, empowering you to create a better experience for your customers and your internal teams.”
The primary benefit of our newly released Navigator Reporting Engine is the ability to forecast better. Everything from projected completion dates, to onboarding revenue, to projects that are predicted to be late.
While 2022 is fully underway, it is not too late to create an improved forecast or even revise your existing predictions. By continually tracking your data, breaking down that data collection analysis into weekly chunks instead of the entire year, and by using tools like the new Navigator Reporting Engine from GUIDEcx, you won’t have to rely on a crystal ball for effective forecasting.
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