This blog is operated by Rugged Logic, the author of 4cast - a mid market financial planning tool.
The Rugged Logic website is here
The forecasting and planning process will at some point require one to produce a financial model. Models can be simple, with only a few assumptions, or they can (and typically do) grow to include links to other workbooks, queries into other databases and all sorts of other quirks included by the person that built them. Software has been written to aid the forecasting process but given its nature, this is a very difficult nut to crack.
If three people in a room working for the same business, each built a forecast for the company, we would inevitably end up with three very different outcomes.
This is inevitable since each forecast would have that persons interpretation of the businesses make-up, their understanding of the business environment and therefore their assumptions about the future.
This blog is intended to stimulate discussion, propose solutions and generally debate these issues that affect every company in every country in the World.
so true!
If I looked at my financial model 100 times over the course of a day I would make over 100 changes for sure.
It never ends, when is a forecast complete??
One thing I know for sure is that a forecast will never be 100% accurate