Monthly forecasting for budget holders

Revenue monthly forecasting involves estimating financial outcomes on a monthly basis for the current financial year. It involves analysing historical data, current trends, and relevant factors to make well-informed predictions about the financial year’s performance.  

This approach ensures effective and robust financial management for the council. 

How monthly forecasting supports effective financial management 

Monthly reporting is crucial because it helps the council anticipate and prepare for challenges, make informed decisions, monitors financial performance, and allows for corrective actions and fiscal responsibility. 

Anticipation and preparedness for challenges 

Monthly forecasting allows budget holders to anticipate and get ready for upcoming financial difficulties or opportunities. By analysing trends and data, they can foresee potential issues and plan proactive strategies to address them effectively. This proactive approach enables the council to be better prepared for unexpected financial changes. 

Informed decision-making 

A clearer understanding of expected revenues and expenses obtained through monthly forecasting empowers budget holders to make informed decisions. This insight helps in efficiently allocating resources and setting spending priorities aligned with the council's goals and needs. It ensures that financial resources are optimally utilised to achieve maximum benefit. 

Regular monitoring and control 

Monthly forecasting enables continuous monitoring of financial performance against the budget. It allows budget holders to identify any significant deviations promptly. This regular check helps in maintaining control over spending and prevents any prolonged or unnoticed financial discrepancies, thereby ensuring better financial discipline within the council. 

Corrective actions and budget alignment 

In case of substantial overspending variances, the process prompts the formulation of a recovery plan. This plan outlines the necessary steps to rectify the overspending issue and bring financial performance back in line with the budget. Taking corrective actions ensures fiscal responsibility and helps prevent long-term financial challenges by promptly addressing deviations from the planned budget. 

How to carry out monthly forecasting

You can get financial forecasting guidance on the My Oracle Hub.

For information on the monthly timelines for forecast reporting use this interactive monthly calendar on the My Oracle Hub.