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Incorporating a forecast into your dashboard can be tricky, but it’s an essential step for anyone looking to compare actual performance against projections. We’re going to break it down and show you how to do it effectively.
Why Forecasting is Essential
Forecasts help businesses plan for the future by comparing actual performance against budgeted numbers. It’s a powerful tool for CFOs and decision-makers who need clear insights into how a company is tracking against its financial goals. Adding this kind of visibility to a dashboard not only helps drive strategic decisions, but it also simplifies the comparison between actual and projected figures, a feature every financial leader appreciates.
At Pineapple Consulting Firm, we specialize in helping businesses become more data-driven. Today, we’re diving into how to add a forecast to your dashboard and make that comparison between actuals and forecasts seamless.
Let's break it down.
Step 1: Preparing Your Forecast Data
First things first, we need to get the forecast data ready. For simplicity, we’re working with monthly forecast data that includes revenue, expenses, and profit. Of course, depending on your business needs, you could break this down further by sales rep, product line, or territory. The main goal is to ensure the data is organized in a clear, database-friendly format.
Step 2: Adding Your Forecast to the Dashboard
Once your data is ready, we’ll bring it into the dashboard. We’re starting with a basic structure that already has actuals data in place. Here’s how to add the forecast on top of it.
Set Up the Forecast Data Source: Our actuals data is coming from a service like Coupler.io, but we’ll treat the forecast as a separate data source. By duplicating the current data source and linking it to the forecast sheet, we can seamlessly integrate the two.
Blending Actuals with Forecast: This is where the magic happens. We’ll blend the actuals and forecast by joining them on a common field—usually a date range. This allows both datasets to appear in the same chart, making it easy to compare side by side.
Configuring the Visual: Once the data is blended, you’ll configure the chart to show actuals and forecast on the same axis. This keeps the visual clean and makes comparisons much clearer.
Step 3: Calculating Variance
Now that both the actuals and forecast are in the same view, you’ll want to calculate the variance between the two. This is a critical metric for tracking how well you’re performing against your goals.
Here’s how to do it:
Create a new formula to calculate the percentage difference between actuals and forecast, using something like (Revenue / Forecast - 1). Display this as a simple scorecard on your dashboard to highlight whether you’re ahead or behind your target.
Step 4: Adding a Date Filter
To make your dashboard even more functional, add a date range filter. This allows users to easily switch between time periods, ensuring they can view the data that’s most relevant to them.
Wrapping Up: A Complete Dashboard
With the steps above, you now have a functional actual vs. forecast dashboard that:
Clearly compares actuals and forecast.
Displays a variance metric for performance tracking.
Includes a date filter for dynamic time frame selection.
This setup is a solid foundation for any financial dashboard, but it can be customized further to fit your business’s specific needs. Whether you’re looking to add more dimensions, metrics, or improve the design, you now have the basic tools to build on.
The Importance of Forecasting in Decision-Making
Financial data tends to focus on what’s already happened, making it reactive. By integrating forecasts, you give yourself the ability to look ahead and be proactive with your decisions.
At Pineapple Consulting, we work with clients to build dashboards that not only reflect where a business stands today, but also where it’s headed. Forecasting is one of the most valuable tools in that process, and we’re always excited to help companies create dashboards that drive smarter decisions.
If you’re interested in building or enhancing your own dashboards with forecasting, we’d love to help. Reach out—we’re here to make the process as smooth as possible.
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