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Continuously Forecast Revenue

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If current revenue trends continue, what is the best case scenario?

Revenue forecasting and/or scenario planning provides a look into the future. An educated projection or estimate into what your sales might look like a year from now. Dependent on the business model, organizations can forecast for products, services, other revenue streams, emerging markets, multi-year plans, and/or re-forecasts of budgets and sales plans. To prevent any missed revenue opportunities, organizations must enable analysis of changes in future revenues and measure the impact on the profit and loss statement.

Revenue projections are only as meaningful as your baseline data. Organizations can use current data to project into the future and use trend lines to create a data-based forecast that can take the place of that crystal ball and provide you with more accurate projections of future performance. Provide revenue forecasting capability and enable a firm to adjust business plans to reflect changing business scenarios and market conditions such as customer retention, competitive share gain, expanding markets and new lines of business.

Why is it critical to continuously forecast revenue

• Past trend analysis influences future performance
• Determines future resource allocation (staff, capital purchases, time)
• Helps plan and predict future cash flow requirements
• Seasonal changes help determine inventory planning and purchasing
• Vital in measuring against plan and actual
• Identifies opportunities and competitive advantages
• Isolates problem areas that could negatively influence revenue
• Predicts future performance and if targets will be realized

Why PROPHIX for forecasting revenue?

• Direct linkage to external sales solutions
• Unlimited periods can be utilized in forecasts (annual, quarter, month, week, day)
• Automatically consolidates actual and plan data
• Does not jeopardize actual data or other budget drafts
• Sales employees and other executives collaborate on the forecast
• Create new assumptions without compromising data integrity of original forecast
• Automatic processes that update the forecasts

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