In the piece, Hoffelder detailed how businesses are, “relying on forecasting in previously unimagined ways,” and went on to say that forecasting is “no longer just a supporting analytical tool.”
Using several enterprise-level companies as examples, Hoffelder explained that, “the [forecasting] process has become so central to companies’ overall growth plans that the way it’s done has become an essential part of the business itself.”
The most interesting portion of the piece came when Hoffelder laid-out current challenges for businesses undertaking forecasting as a significant role within their operations.
“A forecast always tries to include as many variables as possible…But some corporate executives take that too far and put extraneous variables into the mix. Such overage can clog the forecasting process, leading to mistakes and misuse of a CFO’s time.” – Kathleen Hoffelder, Senior Editor, CFO.com
Hoffelder’s analysis provides a prime example of where and how new, cloud-based planning, reporting, and forecasting fits into a company’s finance operations, and why Cloud integration is so important for so many businesses.
As a standalone solution, a financial forecasting tool can still add significant value to any business. But properly integrating forecasting software with a financial consolidation tool that pulls together critical data from several sources, and a visual analytics solution to easily understand business performance, helps businesses to yield the maximum results out of their forecasting solution investment. It’s the most efficient way to leverage the most valuable business data to make the most informed business decisions.
Furthermore, forecasting is only beneficial when:
1. It is a continuous process.
2. Businesses are nimble enough to re-plan based on forecast changes.
Doing both requires a solution that promotes collaboration throughout the company.
According to Hoffelder, the trend is clear:
“Companies have come to rely on their forecasts as working documents throughout the year, while updating them on a daily basis. No longer do multi-year plans merely molder in desk drawers, gathering dust.” – Kathleen Hoffelder, Senior Editor, CFO.com
Modern businesses are taking a new approach to financial forecasting, and they need a modern solution to do it. That’s why so many of the fastest-growing, most innovative companies are turning to the Cloud to help automate financial processes and gain more business performance insight to drive better decision-making. And when they search for Cloud-based forecasting solutions, they’re increasingly choosing Adaptive Planning.