As we enter P8, it is a great
opportunity to re visit the importance of “financial forecasting” and your role
as leaders within the organization. All salaried managers play an
integral role in the forecasting process. Your DDS should be reaching out
to each of your for the respective components of eforecast related to your
position.
Here is a simple process for you to
follow weekly after each week closes;
- To get started review your prior month PL report as well as your TYD data as these will help to outline trends in how your account has been performing.
- Review Revenues, COG’s, Payroll and direct expenses as well as PBO
- Each week you have an opportunity to share with your TEAMs the importance of forecasting.
- On Friday, after all of your census, purchasing, Pcard and payroll modules have been completed go into the eforecast tab on eMorrison
- Review your week 1 numbers and see how they stack up against your budgeted week 2, 3 and 4 respectively.
- Take a quick look at your census revenues to confirm that you will be on target with that revenue
- Look at the Special Event Calendar, Life Enrichment, activities, and themed meal activities coming up in the weeks ahead within the department
- Project the impact that these items could have on your Revenues and COG’s
- Target potential revenues or transfers that will occur by week and adjust revenues to reflect your anticipated business volume
- Review your COGs for week one and verify that you hit your target, if you did not hit your target you will need to adjust each of the following weeks forecast to insure that PBO is on track.
- Follow this same process for payroll and direct expenses.
- Be realistic and consult with your RDO if you have specific circumstances that you are not sure how to forecast for.
- Be sure to add “notes” in the notes section of your eforecast module. These notes are essential to your RDO and their reporting accuracy when they complete the monthly forecast for each account they manage in the region.
A few additional reminders
- RDO’s will view your eforecast weekly and follow up with you regarding variances
- Final month end forecast numbers are locked after the third Monday of each month and your RDO must submit numbers based on your initial and weekly data that was input into the eforecast module. For P8, eforecast will close on May 18th
- Accuracy is the key, be precise, timely and communicate often with your RDO