The revenue forecast predicts future revenue and is generated using a machine learning model. This enables you to better predict trends to inform financial strategy and decision making.
Last updated: December 23, 2024
Available for Enterprise plans only.
The revenue forecast is an invaluable tool for predicting future revenue, providing crucial insights to guide informed financial decisions, from credit control policy to resource management.
Use the revenue forecast to to support your:
- Financial Planning: The tool provides future revenue predictions, enhancing liquidity management, budgeting, and financial planning. This ensures adequate resources for operational needs and investments.
- Risk Reduction: By forecasting revenue trends, you can proactively address risks related to liquidity, customer payment behaviours, and credit policies, reducing the likelihood of financial distress.
- Performance Monitoring: The revenue forecasts allow you to track performance against targets, identify deviations early, and take prompt corrective actions to maintain a steady growth trajectory.
The revenue forecast, updated monthly on the first day of each month, provides a monthly revenue forecast.
A preview of the revenue forecast chart is available in Chasefeed, with an option to see more.
The dedicated Revenue forecast page can be accessed by clicking the See more button. This page includes several summary statistics related to the revenue forecast, such as:
- YTD (actuals) - The total observed revenue from the start month up to the current date provides a summary of the actual earnings before the forecast period.
- Cash at risk - An estimate of how much revenue will likely go uncollected due to unpaid debts for the remainder of the chart view period.
- Monthly Forecast - The forecasted revenue for next month
- Annual Forecast- The forecasted revenue for the remainder of the chart view period.
The page also features a tabulated view of the actuals, revenue forecast, and the best and worst-case scenarios, representing the confidence interval.
Functionality:
- Tooltip: Hover over the chart to inspect the revenue value.
- Export to as an image (PNG) or to spreadsheet (XLSX): Click the download button to export the chart and table as a PNG file or the data in XLSX format.
- Select a start month: Select a starting month from the "Start from" dropdown to display the subsequent 12 months on the chart
Revenue forecast calculations
Our revenue forecast feature utilises multiple machine learning models, each tailored to specific segments based on your continent, typical invoice volume, and typical invoice value. Additionally, each model employs a robust feature set designed to provide a comprehensive analysis of your financial outlook.
The predictions consider the following:
- Country: Implicitly incorporates geo-specific economic conditions, regulations, and market trends.
- Timezone: Aligns financial activities with local business hours and seasonal trends.
- Financial Year End: Aligns revenue projections with the company’s financial reporting periods.
- Month: Captures seasonal variations and monthly patterns in revenue.
- Year: Considers long-term trends and changes in the business environment.
- Season: Adjusts forecasts for seasonal effects impacting revenue.
- Previous Revenue Values: Identifies trends and patterns from historical revenue data.
- Percentage of Invoices Paid On Time: Indicates cash flow health and customer reliability with respect to the due date.
- Total Amount Due: Provides insight into potential future cash inflows.
- Value of Invoices: Understands the scale of business operations and potential revenue.
- Volume of Invoices: Provides context to the transactional frequency of business operations
- Volume Chased: Informs on collection efforts and their effectiveness.
- Amount Chased: Highlights the monetary value of collections efforts.
- Credit Notes: Adjusts for returns, discounts and write-offs, reflecting net revenue.
- Overpayments: Adjusts future revenue to account for refunds or future credits.
- Pre-payments: Provides early indicators of future revenue.
Still need help?
Please get in touch at support@chaserhq.com or message us on live chat, we would be happy to help.