revenue forecasting: art, science or guesswork?
DESCRIPTION
A Board member asks you a simple question: What is the revenue forecast for the next 9 months? Developing an accurate response is anything but easy for most finance departments. The process has become more challenging as companies diversify their revenue streams with multi-element arrangements that can include recurring and service-based revenue sources via subscriptions and professional services engagements. Predicting booked orders are difficult enough, estimating future revenues presents an even bigger challenge. But it doesn’t have to be that way. Join FinancialForce.com for an information packed webinar to find out how you can build more accurate revenue forecasts while dramatically reducing the time and effort it takes to do so.TRANSCRIPT
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Revenue Forecasting: Art, Science or Guesswork?
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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Revenue Forecasting: Art, Science or Guesswork?Mike O'Brien, General Manager, Financial Management Applications, FinancialForce.com
Today’s Revenue Forecasting Challenge
• Revenue Stream vs. Booking Value
• Valuation of MEA (Multi Element Arrangements)
• Different Sources of Data
• Gathering and Combining the Data
• What is Known
• What is Expected
• What can be Predicted
• And, The DREADED Question:
Today’s Revenue Forecasting Challenge
Typical Revenue Forecast Model
Opportunity Data from CRMTypically by booking date
Project billing milestone dataBilling do not equal revenue
Subscription BookingsVery reliable revenue schedule
Products Delivered or ratably
Typical Revenue Forecast Model
MUSH
© 2013 Proformative. Proprietary and confidential 8
FinancialForce Revenue Forecasting
Early Stage Opportunities to
be Forecasted
Late Stage Quotes
Booked Project Revenue Projections
Booked MEA’s
Uncertainty Certainty
CombinedScalableAuditable
Version Controlled
Revenue Forecast
Revenue Forecasting: Art, Science, or Guesswork?
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