Why Should I Consider Adopting an ERP System?
February 7, 2023Here are 5 ways an ERP system can transform your business: It’s easy to get connected, and at gotomyerp, we’re here to help. Sign up online or give us a call today.
Until just a few years ago, businesses had the luxury of making decisions based on instinct—but not anymore.
Today’s rapidly evolving business landscape demands unprecedented accuracy and data-driven decision-making (DDDM). With rapid progress in business analytics and storage capabilities, organizations can leverage business information to their advantage.
According to a recent Gartner survey, 77 percent of respondents claimed that developing their forecasting process was among the top three business performance initiatives at their organization.
Many organizations understand the importance of forecasting but are unsure where to start.
If you’re one of those organizations, don’t worry—here’s a comprehensive look at how you can leverage your accounting software’s forecasting capabilities.
In business terms, forecasting is a process that uses quantifiable historical trends and verifiable data sets to project future performance. This data-driven approach enables organizations to make more informed decisions and increases their chances of success.
Forecasting shouldn’t be confused with budgeting; although the two concepts are often lumped together, they represent different sides of the same coin. Budgeting quantifies desired outcomes, while forecasting represents actual performance that will be achieved in a given future time period.
Organizations have used manual forecasting methods for several decades, but these lack the sophistication and accuracy of automated forecasting mechanisms. Artificial intelligence and automation have made it possible to track data in real time and uncover actionable insights in mere seconds.
As the world’s leading accounting software solution for small businesses, QuickBooks also has budgeting and forecasting capabilities. Using QuickBooks cloud hosting, users track metrics on dedicated dashboards and view future projections with the click of a mouse button.
Knowing what to forecast can help give your organization a clear view of its priorities. While needs and goals differ depending on your organization, there are three main elements that all businesses should focus on:
Once you’ve determined which indicators to track, the next step is to pinpoint how you plan to forecast.
The first step is to identify the frequency (weekly, monthly, or annually) and the scope of forecasts. The next step involves choosing a forecasting method; the preferred method will depend on the objective, the nature of the data, and the discretion of your business analyst.
These are four commonly used quantitative approaches to forecasting:
Implement accounting software that offers features that can help your business succeed. Here’s what you must keep in mind during implementation:
Implementing the software is just as important as the software itself.
As a leading commercial hosting provider, gotomyerp offers premium QuickBooks cloud services at competitive rates. Our dedicated software experts can help at each stage of implementation, including optimization, licensing, support, and migration.
To get started, call us at (877) 888-5525 today!