After the outbreak of the COVID-19 pandemic, several businesses have opted for a forecasting tool to manage their operations and finances. Business budgeting software enables you to spend your budget wisely by generating an estimate of future costs required for all business processes.
What is forecasting software?
Forecasting software also known as business forecasting software, is used to make future sales predictions. Using an organization’s historical data, seasonality, market trends, and other external factors. You can minimize financial loss if you produce what consumers require at the right time.
Demand planning enables you to predict the number of products customers will require in the upcoming months or years by considering various parameters.
For example, let’s say you want to generate a forecast for a chocolate-selling company. The forecasting software will consider the previous sales data and analyze times when the sales of chocolates are predicted to be greater than in other times. You can then increase the chocolate sales during times like Christmas.
Financial forecasting software
Budget is the heart of any business, so proper finance planning is essential to run a business successfully. Business budgeting software analyzes the finances required in previous years to estimate the budget you will need in order to meet sales requirements in upcoming years. Using budgeting and forecasting software, you can manage your cash flow by estimating the financial investment required to deliver future market needs.
Tips for choosing the right forecasting software
Choose forecasting software that has features as follows:
1. Meets the purpose of forecasting
Whether you want to generate a short-term forecast, long-term forecast, or predict demand for your new product, the forecasting software should meet your forecasting requirements at every level.
2.Fast user interface
The complete process of forecasting is already time-consuming. Choose forecasting software that has a fast user interface and avoids unnecessary loading times.
3.Comfortable with the entire team
Technical teams can quickly grasp software usage methods, but what about the non-technical teams? A forecasting software should be able to be quickly used and understood by any team.
4.Provide multiple projections
Preparing multiple budgets for forecasting is essential. Good forecasting software provides multiple overlays so that you can compare the data easily while generating a forecast.
5.Drag and drop feature
Drag and drop functionality is a standard feature to include in forecasting software. It makes it easier to handle the software and saves time.
6.Accessible to everyone
Tracking team members to get activity updates can be time-consuming. It is better to use software accessible to all the members of the team so everyone can update their inputs while others can track them easily. This saves a lot of time and avoids manual errors.
7.Easy to use
Technologies are continuously updating to make it easier for consumers. Good business forecasting software can be learned quickly n order to save team members’ time.
8.Accessible from anywhere
Cloud technology has made it possible to access forecasting software from anywhere, anytime. This is extremely beneficial as many people work remotely.
9.Flexible to use
A business forecasting software should have features that you can update according to your requirements. Choose a model that has a user-modifiable and extendable database. Flexible forecasting software allows you to add or modify fields whenever you need to.
10.Provide data security
Data security is a vital feature. To avoid data threats, choose a forecasting tool that guarantees information security.
11.Work with any data
You can have data in any format. Forecasting software should integrate this information to create a standard forecast worksheet. Designing a customized worksheet according to the user’s requirements is a great feature.
12.Records your forecast
You might need your previous forecasts for generating upcoming predictions. For further sales predictions the software should maintain an easily accessible record of all previous forecasting sessions.
13.Integrate with other systems
The forecasting software should be designed to integrate with your existing systems. Historical data should be easily imported from your corporate system into the software and exported back to the system using a supported file interface such as an API, .txt, .xlsx, .xls, .csv, orXML.
14.Provide accuracy to the maximum level
There shouldn’t be a significant difference between the values predicted by the forecasting tool and the actual values of sales. The best budgeting and forecasting software is one that minimizes the difference between both values.
Are you still using the old methods to plan your sales? If so, you could lose your valuable customers to your competitors as they might already be using business forecasting software. Now you know how forecasting software can help to manage your production and plan future sales. Check out our blogs to learn how forecasting tools are beneficial in increasing sales.
contact the Avercast team to know how forecasting software can be helpful in exploring new business opportunities.