Budget and Demand Forecasting

Budget and demand forecasting are important aspects of any finance team. Budget forecasting is the outcome, and demand forecasting is one of its components. Contrary to popular belief, the finance team cannot make demand forecasting decisions without consulting various other teams. The marketing team may need to be involved to figure out the impact of a brand-new commercial series on potential sales in the next 12 months. This needs to be an input in demand forecasting to calculate revenue. The risk management team needs to be consulted to calculate the impact of risk modeling on capital provision requirements. This needs to be an input in budget estimation. These examples are more apt for a mid-range or larger organization. New customers joining and churn in an organization are aspects that also impact small organizations. This would impact budget...