Managing the workflow process for forecast data
After determining what data is required and where it will come from, it will be important to establish processes to obtain the data when it is required. Depending on the complexity of the company’s activities, it may be difficult to obtain consistent data in a timely manner. Obtaining a commitment from department heads outside of the Treasury to supply basic data for testing and modeling is the initial stage. Speaking with company subject matter experts that have a deep, up-to-date grasp of the data you require may also provide you with further insight into the independent variables that may effect the projection.

Creating the optimal workflow for data typically requires:

• Knowing when data is entered or modified in systems.
• Manually modeling a portion of the data (e.g., using spreadsheets) and getting further knowledge over multiple time periods.
• Clarifying the cause of any statistically significant outliers.
• Configuring data feeds

Inefficiency in financial forecasting and lack of data credibility
From little information to disjointed data, numerous forecasts have credibility concerns. Frequently, the forecast fails to accurately portray the direction of the firm. Without credible information, a forecast is ineffective. It will neither assist those crucial leadership dialogues, nor will it develop the organization’s required confidence in the numbers. It will also have minimal value and, hence, little impact on the business. There are a few options that can assist firms in resolving quality concerns and acquiring the necessary data to drive business choices.

Initially, finance teams should develop organized processes, checks and balances, and analytical methods that enable them to consistently provide accurate predictions based on reliable data. Then, teams can develop procedures and implement structured templates to facilitate data replication and display consistency across business functions. Lastly, invest effort in transforming your finance team into trusted business consultants; this will boost your organization’s reputation and decision-making ability.

In your peer responses to the post above

• Evaluate the pros and cons of the suggested actions, and explain whether you agree with your classmate.
• Provide at least one additional action that should be taken to help mitigate the issue your classmate has chosen.
• Provide a rationale for your statements based on evidence from your required readings.