The Flash Report

The flash report starts with the monthly forecast:

Adjusts the forecast weekly for any known changes to sales or expenses.

Why would management want to have a forecast that is adjusted on a weekly basis? 

The answer may not seem obvious if you are in a business that is fairly stable.  However, in businesses that have large fluctuations in their sales, or need to keep an eye on cash flow, this report is important. 

How does the report work?

During the month if I see that sales in the xyz product line are going to be much lower than forecasted, then I would report this. 

I would also be expected to reduce labor costs and other expenditures accordingly to reflect the drop in sales revenue. 


The report itself:

Usually just a few lines comparing the forecasted sales and net income to our new numbers. 

Notes are added to explain the changes.  Often these reports tend to get responses from management for additional cost control actions.


Keeps a tight control on  expenses:

Management should always try to meet or beat the business plan projections. 

This report is another way to keep a tight control on any expenses that may be excessive in light of the business plan.

Other Business Reports:

Business plan

Budget

Forecast

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