Financial executives know the importance of forecasting and should know the essential features of the software for financial projection.
This software, after all, offers mission critical information for your company’s overall safety.
Experienced finance professionals may recall the days they had the arduous task of compiling those numbers manually.
The method has definitely changed tremendously with technology.
Nevertheless, it is easy to find yourself back in ancient times, without the proper features.
This is why it is important to choose your forecasting program wisely.
1. Adjusting assumptions with ease
Financial professionals need an application that can easily adjust the assumptions when comparing software features.
As the fiscal boss, you know it’s standard practice to strategize for the worst, possible and most likely scenarios.
Yet there are occasions when conditions occur, when you first made the predictions you may not have prepared for.
Take for example a global crisis as unprecedented as a pandemic.
Depending on the industry this could disrupt either extreme.
Whatever end is interrupted, you’ll want the opportunity to quickly fine-tune the conclusions that you make.
The program you use for financial projection will allow for that versatility. Getting the opportunity to quickly change the program ‘s expectations would help you prepare for the future properly.
2. Extended projection period
If you work for a start-up business, an extended forecast duration may then be considered to look three years into the future.
But financial professionals would expect their applications for financial forecasting to go beyond the normal 36-month timeline.
Assumptions can be critical for the next five , seven, or even ten years.
This gives you details which you can then equate with knowledge unique to the industry.
In turn, you will be able to determine where your company ranks against the competition.
Those facts enable financial professionals to make changes accordingly.
The extended software function of the projection span is useful as it helps in the strategic decision-making phase which is all useful.
So letting finance gurus refine their conclusions further.
3. Inexhaustible number of Project
Some of the best applications in financial forecasting for an infinite number of forecasts.
Fastidious financial executives would certainly find this an important feature.
Limited to a finite number of projections after all, prevents you from covering all bases.
This could be detrimental as you are responsible for all the “what if” scenarios that relate to corporate finance.
It also makes sense that this deficiency could prove to have a negative effect on the bottom line of your business.
If you base your predictions on many assumptions, choose a program of financial projections that does not impose a limit on the total scenarios.
4. Compatibility with other financial tools
Integrating with other financial instruments is a key component of the framework for financial forecasting.
After all, keeping the forecasts as an astatic document does not allow a rolling forecast.
This is why many apps interact with accounting software and spreadsheets.
Others combine with customer experience management systems and human resource data.
These links are vital to the company’s overall well-being as they continuously update the projections.
In addition, automation eliminates manual entries and errors that can make cloud decisions.
Ultimately, it is up to financial professionals to decide which integration with other financial tools makes sense for their business.
5. Audit trail
Given the complexity of the software for financial projection, it seems appropriate that those applications should have an integrated audit trail feature.
But this is clearly not the case with the absence of that feature being recorded by roughly a third.
Giving access to an audit trail helps you to keep a watchful eye on all workers who have access to the program.
As the person in charge of accounting, it is important that you know who is preparing reports and publishing them.
In addition, you need insight into the status of all deadlines — who met them, and who didn’t.
This function is especially useful when you’re responsible for several departments.
Choosing the best program for financial projection involves an assessment of the core functions.
Finance practitioners need a versatile framework. It’s important to have the ability, for example, to quickly change the assumptions you make.
Additionally, you should not be bound by short forecast periods or limited projections.
In addition, to help with rolling forecasts, your financial projection software should integrate with other financial instruments.
Eventually, you can verify whether the application has an integrated audit trail.
As a financial professional, you understand that making reliable predictions is essential to financial health in business.