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The Forecast

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What is a Forecast:

  • A budget for one month.
  • 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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Return from forecast to business reports


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