Forecasts are very important to a company. They function like budgets where the company would like to understand possibilities that may crop up and be prepared for the unexpected. Forecasts are usually undertaken by the experts in actuary science who can estimate the risks and foresee possibilities in the market that may affect the performance of the company, depending on their skill, knowledge, experience and market trends.
These forecast experts try to look ahead for ‘icebergs’ and to avoid them so that the company will continue to thrive in any economic condition.
A forecast template may contain the following pieces of information:
* Company Name
* Cash forecast
* Cash forecast sources
* Expense forecast
* Expense forecast sources
* Unforeseen activities
* Depreciation / Appreciation
* Total figure
* Approving Authority
The above information records the financial figures that may impact the company whether it is per department or as a whole for the organization. A forecast template can be fluid; the columns of information may change as the company objectives or mission may change. The company’s businesses are also impacted by the fluctuating economy which no one can control or predict with great accuracy. Hence, the forecast template must be reviewed regularly or immediately when news of market changes is received. Fast action will keep the company buoyed in bad economy.
The forecast experts need to be on their toes constantly, especially when the economy is unstable.
Consider the attached sample template for your convenience.