Why sharing the truth in financial forecasts is so important

Assumptions are an important input for financial forecasts. Making them visible and easy to understand is a way of sharing the truth.

If you are in non-finance…

Don’t just fill in the forecast template. Write down your assumptions. Include them in the forecast template. Understand any risks in the assumptions by asking questions like: “What could go wrong?”

If you are in finance…

When reviewing and updating financial forecasts, most of the effort should be in testing assumptions and making sure that they are up to date. This ensures finance and the rest of the business are on the same page.

A forecast without assumptions is just maths. You need more than just maths to share the truth. And make good decisions.

How are you sharing the truth when it comes to financial forecasts?

I’d love to hear your thoughts.

Robert

P.S. Whenever you're ready, there are a couple of ways I can help:

1. Come to your site and run a Finance for Non-Finance Managers workshop. These workshops are designed to help your people understand what’s behind the numbers so that they can have greater impact.

2. Mentor your Finance team. The forecast is the most powerful tool in a Finance professionals tool bag. Book me in for a chat about how I can help add a couple of dimensions to this skill set, and see how your Finance team can become the trusted advisor at all levels in your organisation.