Financial forecasting is an essential step of many business activities, from creating a financial plan to establishing a budget for the upcoming fiscal year. However, newsfromtechtoday calculating financial forecasts by hand is time consuming and prone to error — but financial forecasting software can cut out much of the manual work. In this guide, we explain how to choose financial forecasting software and what features to look for in financial forecasting software.
- What is financial forecasting?
- How to choose the best financial forecasting software
- What you should look for in a financial forecasting software
- Frequently asked questions pollymackey
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What is financial forecasting?
Financial forecasting involves analyzing an organization’s past and current financial performance to predict future financial performance. Financial forecasting thepropertyhangout is essential for making evidence-based business decisions instead of basing recommendations purely on conjecture.
There are many different financial forecasting techniques that businesses can use. The four main methods are straight line forecasting, moving average forecasting, simple linear regression forecasting and multiple linear regression forecasting. The best financial forecasting software will include all of these quantitative techniques, so you can compare them to each other and choose the best one for each specific scenario. lancashiregazette
How to choose the best financial forecasting software
Consider your holistic software needs
You can get standalone financial forecasting software, roboticsforyou such as Anaplan. However, some businesses prefer to choose more versatile software that includes financial forecasting as well as other features. For instance, large enterprises use dedicated ERP software like Workday for multiple types of forecasting, including financial forecasting. Consider your overall software stack and what needs you have to narrow down the exact type of software that you’re looking for.
Decide on your budget
Budget is often a major factor in choosing a financial forecasting software, worldsfirst3g so you should start thinking about that at the very beginning of the process. Some software companies only charge for report creators or managers, while others charge for every single user, even passive viewers. Ask the various software platforms for pricing quotes so you can start comparing the costs to your budget. wdxcyberstore
Sign up for free trials and demo calls
Some financial forecasting software offers free trials, so you can test out the software for yourself. Other software don’t offer free trials, reitaglobal but the sales teams will do a live demo on a video call to answer all your questions. This is a perfect opportunity to test out the most essential features — we listed some in the next section to give you an idea of what to look for.
Investigate the integrations
Integrations are essential to any software platform, kavkaz-club and they’re especially important for financial forecasting software if you plan to import the data from another tool. Inquire about pre-built connectors as well as the ability to create your custom integration through an API or other means.
Examine the security measures
Keeping lastofthesummerwhine your financial integration is essential for protecting the integrity of your business and maintaining compliance with various national and international laws. Investigate each financial forecasting software on your shortlist to see what security protocols they offer. Keep in mind that some platforms confine certain security features like two-factor authentication to more expensive enterprise-level accounts, so that might affect your budget. interieur-huis-tuin