Spreadsheet SOS: Making Forecasts Work for You

Forecasting is one of the most powerful tools accountants can provide. Yet, it often needs to be more efficient with time-consuming processes, manual errors, and the challenge of getting clients to see its total value. Welcome to Spreadsheet SOS: Making Forecasts Work for You, where we explore how to tackle these issues and deliver better forecasting outcomes.

In this guide, we'll break down three key ways to improve your forecasting process, showing you how to:

1. Save time, costs, and effort when building a forecast.
2. Keep forecasts up to date without manual headaches.
3. Communicate forecasts effectively to keep clients engaged and informed.

Let's dive in.

1. Building a Forecast: Overcoming the Time, Skill, and Cost Hurdle

Creating a robust forecast in a spreadsheet requires significant experience, patience, and attention to detail. From configuring tabs and linking accounts to making complex formulas work without breaking, the process can be daunting—and costly.

In fact, a recent survey of 80 financial professionals and business owners found that:

• 45% need help finding skilled staff to handle forecasting. ‍
• 60% report manual data entry errors, such as broken formulas or version control issues, as a significant problem.

Fathom addresses these pain points by providing a ready-to-use, automated forecasting model. Key features include:

• Three-way forecasting: Automatically flows from profit and loss to the balance sheet and cash flow statements. ‍
• Customizable assumptions: Edit formulas, set timing profiles, and add notes for better collaboration. ‍
• Automation for complex calculations: From loan repayments to depreciation, Fathom makes tricky calculations as easy as filling in the blanks.

Streamlining saves time and allows junior team members to contribute, reducing the need for high-cost expertise while maintaining accuracy.

2. Keeping forecasts relevant and up-to-date

The moment a forecast is finalized, it often becomes outdated and needs to be updated regularly to provide real value. Importing new data manually leads to version control issues, broken links, and endless reworking—a process that can make updating forecasts feel like creating them from scratch.

Fathom eliminates this frustration by keeping your forecast dynamic and continuously aligned with your accounting system. Here's how:

• Automatic roll-forward updates: New financial results are automatically integrated, keeping opening and closing balances accurate. ‍
• Scenario planning: Create, adjust, and compare best- and worst-case scenarios in seconds. ‍
• Error-free adjustments: Revise assumptions and inputs without worrying about breaking your model.

By automating updates and maintaining accuracy, Fathom makes sure that your forecasts remain relevant throughout the year, even in rapidly changing business environments.

3.Communicating Forecast Value to Clients

One of accountants' most significant challenges is helping clients understand and act on their forecasts. Without clear insights and actionable takeaways, even the most well-built forecast can feel like a "nice-to-have" rather than a must-have.

A survey found that 60% of businesses need help interpreting forecast details, leading to disengagement and skepticism about the value of financial planning.

Fathom helps overcome this with impactful visuals and reporting tools, such as:

• Business Roadmap: Clearly outlines potential outcomes based on different actions or scenarios. ‍
• Quick Metrics: Highlights the most relevant metrics in an easy-to-digest format, with dynamic updates based on client input. ‍
• Comprehensive reporting: Includes revenue comparisons, six-plus-six visuals, detailed assumptions, and profit and loss breakdowns, all designed to foster meaningful discussions.

These tools transform the forecast from a static document into a dynamic decision-making tool, ensuring clients understand and value your work.

Making Forecasting Work for You

To recap, here's how you can level up your forecasting process:

1. Save time and reduce costs with easy-to-use models and automation.
2. Keep forecasts up to date with dynamic links to your accounting system.
3. Communicate insights clearly with powerful visuals and reports.

With Fathom, forecasting becomes more than just a service—it's a way to deliver value to your clients while improving your firm's productivity and profitability.

Ready to improve your forecasting process? Get in touch with the Fathom team today and start your free trial.

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