The
Forecast
What is a Forecast:
- Created just prior to
the month it's for.
This
monthly report is important in that it helps to project the
current month’s earnings in light of any changes to the business.
It can also help answer
any questions as to
why there is a variance to the business plan.
What adjustments are made:
- Sales
are adjusted to reflect any new information
- Expenses are
adjusted for changes in sales, purchase cost, etc
- Any cost savings
are included
It
always goes back to the Business
Plan:
Usually,
the top management will always go back to the original five year
business plan. If the current numbers are off from the plan,
then
a bridge will have to be done.
A bridge is nothing more than explaining the difference between the
business plan numbers and the current results.
Record any changes that you make so when it comes to bridge, you'll be
in good shape.
Other
business reports:
Business
Plan
Budget
Flash
Report
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