Date posted: 29/05/2023 5 min read

Regular forecasting’s a game changer

Traditional budgets were often carved in stone for a year, but business success today demands fast, accurate and collaborative reforecasting. Brought to you by Phocas.

Budgeting used to be very static. Each department would submit proposals that were reviewed by Finance before an annual budget was triumphantly released that every member of staff had to work towards for the next 12 months.

So called ‘set & forget’ budgets would stubbornly remain unchanged no matter what unfolded, either in the market or internally, over the following year.

Surprisingly, some organisations today still cling to the process, but they are taking a very big risk, one senior industry figure has warned. “These days, static budgets simply don’t cut it,” Jordena Tibble CA, product expert at Phocas, says.

Tibble argues that budgets need to be constantly reviewed so everyone in the company knows how they are performing. “The analysis of the budget variances can provide the most insight and help business leaders act quickly on unforeseen opportunities or problems.” says Tibble.”

Why budget reforecasting is important

“Often no one realises there’s an issue in the results and the impact this will have on planned budget activities for weeks because viewing budget vs actual numbers can involve a lot of manual work, so it’s put in the too hard basket,” she says. “The finance team needs to get the actual numbers from the ERP, copy them into spreadsheets and then run formulas for comparison.

Fortunately, budgeting software can now consolidate data significantly faster and make revising a budget much easier.

“Fortunately, budgeting software can now consolidate data significantly faster and make revising a budget much easier.”
Jordena Tibble, Phocas

Jordena Tibble, Product Expert, PhocasPictured: Jordena Tibble CA, Phocas

The benefits of budgeting and forecasting software

Budgeting and forecasting software facilitates collaborative budgets within organisations and then helps track how they are performing in real time. It means accountants can help businesses make informed decisions and react nimbly to unexpected events. Its many functions may include:

  • The ability to include multiple data sources including incorporating operational data within budgets
  • Clear workflows and commentary about changes so everyone knows when and why an adjustment is made, eliminating version control issues
  • Built-in security to handle all permissions.
  • Live reforecasting at any time throughout the financial year based on actual performance

“Budgeting this way builds confidence in your business teams’ ability to adapt easily to budget variance. Comparing actual performance with the budget is practical and helps you plan better. We all need the opportunity to identify any issues that were unaccounted for when the budget was built and then to adapt,” she says.

When you’re armed with this information in real time, you have more control of your financial position throughout the year. It also enables you to take action to avoid greater risks in the long term, while at the same time helping you to achieve your business goals.

Find out more:

To learn how Phocas’ business planning and analytics solution can transform your business, visit