Forecast Variance

What is Forecast Variance?

Forecast variance is the difference between a predicted result and the actual outcome over a given period for a variety of business activities.

The difference between forecasts and real-world results can be complex and subject to unpredictable events. However, in many cases, forecast variance can be attributed to out-of-date, inaccurate or incomplete data sets that impact the results of business intelligence (BI) tools.

Related terms

3 Way Match

3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.

30-Day and 13-Week Operating Cash Burn

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.

Account Reconciliation

Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.

Accounts Payable

Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.

Accounts Payable Automation

Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.

Accounts Payable Days

Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.