It is vital to prepare a financial forecast to guide in deciding on the direction you want to take for your business. The financial estimates will let you make a simulation of what a future can be and prepare for various scenarios that might happen. However, nothing will go 100% right with your plan. Some changes may be for the better, and other outcomes can be worse. To help correct and improve the forecast, you need to compare the estimates to the actual and make some adjustments.
Below are the reasons why we have to compare the forecast vs. actual result in the Excel template.
You can expect a better result when you compare your forecast to the actual wherein adjustments can be made. Changes are expected when you prepare a projection, but it should be to a minimum by regularly comparing your actual result. It may sound tedious, but it is a proven tool to have a better outcome that is crucial to your business' success. eFinancialmodels has different financial model templates that utilize the forecast and actual in the preparation.
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January 2021
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