How do you help your FP&A teams mitigate any inherent biases in forecasting and predicting future financial performance?
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India Head and Director of Global Finance Shared Services in Hardware2 years ago
We have Adaptive tool for financial forecasting. It takes the data for actual performance also. The sales funnel information is regularly fed into it by the Sales Team. These are important aspects used as inputs for financial forecasting for future financial performance. So, our forecasting is based on real time data that mitigates any inherent bias in forecasting and predicting future financial performance.
In order to mitigate any inherent biases in forecasting its important to have inclusive touchpoints with all the department heads with respect to assumptions on growth numbers and expected future financial positions.
It will help to make a realistic achievable budget.