5 trends to keep your eyes on
1. Increased demands for a continuously updated budget and forecast
"The report showed that the need for a more continuously updated budget and forecast has increased over the past three years. This is certainly due in large part to the pandemic, but the need also seems to be since management, the board and owners generally place higher demands on updated forecasts. The world is changing rapidly and therefore, continuously updated data is needed to be able to make more proactive decisions”.
2. Rolling 12 is still a favourite
“In the survey, many of the respondents mentioned that they would like to work with rolling 12. This is interesting because at Planacy, we often see that the 12-month forecast horizon tends to be limiting and thus fail. This may be due, among other things, to the fact that the method does not contribute enough value to the business, and also that one's control models in general are not linked to rolling 12 months. Or that you simply miss calendar effects that arise when comparing 12 months against each other”.Tips: Läs också Möjligheter (och problem) med rullande prognos där vi går igenom de olika metoderna för prognostisering, samt vilken vi oftast rekommenderar!
Tip: Also read Opportunities (and problems) with rolling forecast where we present the different forecasting methods and which one we usually recommend!
3. Dynamic rolling forecasts are the future
“There has long been an increasing trend to work more dynamically with rolling forecasts. Of the companies that want to change their forecast horizon, almost 70% want to work with rolling or more dynamic financial planning. Only 31% actually work with a rolling or dynamic forecast horizon today. Many of the respondents within FP&A believe that history, culture and management are the reasons why the traditional budget remains, even though they themselves see an increasingly higher value of dynamic forecasting”.
