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 However, in many cases, forecast variance can be attributed to out-of-date, inaccurate or incomplete data sets that impact the results of business intelligence (BI) tools.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

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to track and measure their predictable, recurring revenue streams over a one-year period.

Automated Cash Application

Automated cash application (also known as automated cash posting or automated cash matching) is a process in accounting and financial management that uses technology and algorithms to match incoming payments or cash receipts with corresponding invoices or accounts receivable entries in an organization's financial records.

Average Days Delinquent

Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts.

Bill Capture

Bill capture, also known as invoice capture, refers to the process of extracting data from incoming bills, invoices, or purchase documents and converting it into a digital format that can be processed and managed electronically within an organization's accounting or enterprise resource planning (ERP) system.

Budgeting and Planning

Budgeting and planning is the process of setting financial goals, creating a detailed plan to achieve those goals, and allocating resources to various activities and initiatives within an organization.

Business Intelligence

Business intelligence (BI) refers to the use of technology, tools, processes, and methodologies to analyze and transform raw data into actionable insights for making informed business decisions.