While it may seem natural to perform sales forecasting in Excel, this is not a good idea. In fact, this is highly questionable and could have disastrous consequences for your business.
I’m sure you’ve heard of the concept of sales forecast and the role it plays in getting results. However, if you use the incorrect version of this tool, you may find that you end up with an untrustworthy company. Here are some things you need to keep in mind when using Excel to generate forecasts.
Forecasts should only be generated using the built-in formulas. This can only be done using the built-in functions and macros which are available in the Microsoft Office Suite. These are the best tools to use because they will only produce the right forecast at the right time, thus, increasing accuracy.
Excel Is Not The Best Tool For Using a Sales Forecast
When you are creating the formula, it is a good idea to make sure that you don’t replace any formula with another sheet’s formula. This means that you don’t write down the formula to calculate the sales for any sales forecast. Instead, it is better to manually enter the formula in the formula bar. The reason for this is that Excel automatically changes the formula that you entered once the calculation is done.
If you can afford it, create a separate sales forecast for each product. The reason behind this is because it would be harder to get an exact copy of what the customer is going to buy when you are creating multiple sales forecasts.
Using a sales forecast as a planning tool is actually very useful. If you have a detailed vision of the future sales figures, you can then write it down and track it as a way of checking on the progress of your sales. However, the sales forecast spreadsheet must be constantly updated. To keep this from happening, you have to manually addto it and ensure that it is precise.
So, if you have a long-term plan for your company, you need to include the sales forecasts in your list of yearly goals. This is because they will help you determine whether you are on the right track or not.
Budgeting is important because it will determine whether you are moving forward or not. Just like an accounting system, it keeps tabs on your revenue and expenses.
In case you’re having problems creating the sales forecast spreadsheet, you can always ask the support personnel. They are very knowledgeable about Excel and will help you create a great one. Of course, they will charge you for this service.
So, you should think twice before using Excel for generating forecasts. Use a good spreadsheet instead.
In my opinion, if you want to have a reliable sales forecasting, stick to the built-in functions of Excel instead of using other versions. This way, you can be sure that the results will be accurate and you won’t end up with a fraudulent company. YOU MUST SEE : safety tracking spreadsheet
