|
How to audit your forecast
Forecasts are only valuable if you're confident in the numbers. Fathom enables you to audit your forecast for full transparency in the calculations.
When auditing your forecast, ensure you are viewing your main forecast or the scenario you want to audit. If a scenario is active, its name will be displayed in the upper-right corner of the forecast.
The tools available to check your forecast calculations depend on the area of the forecast you're auditing.
For clarity around your forecast values, you can audit the:
If you want a document showing all of the rules used to calculate your baseline forecast and the assumptions you made, you can download the Forecast Value Audit report.
π‘Smart Tip: To make auditing your forecast easier later on, we suggest documenting the assumptions you make while forecasting.
Audit your Profit & Loss Forecast
When viewing your Profit & Loss in the forecasting tool, you can see the breakdown of an account's baseline values and microforecast values.
If you have microforecasts active on the account, you can click on the Microscope icon next to the account name to reveal the baseline values and the microforecast values. You can determine how microforecast values are calculated separately from the baseline values.
If no microforecasts are active on the account, then you will not have a breakdown, as the account's values will only consist of the baseline values.
Audit a Profit & Loss account's baseline values
How you audit a Profit & Loss account's forecast values depends on the account's classification:
π‘Smart Tip: You can also audit a microforecast's values.
Audit Revenue, Cost of Sales, and Expense forecast values
Accounts classified as Revenue, Cost of Sales, and Expense accounts are calculated with value rules.
You can view all of the value rules used to calculate the baseline values of a Profit & Loss account:
|
The value rules will be listed in timeline order, with those used to calculate the beginning values of the forecast listed first.
A Formula value rule can reference Profit & Loss classifications, headings, accounts, and driver values.
You can easily view the values for Profit & Loss line items on the Profit & Loss in your forecast. If prior periods are referenced, you're able to view up to 12 months of actuals in the forecasting tool. Actual or historical periods are highlighted in light grey.
You can also determine how driver values are calculated.
Audit Interest, Depreciation, and Amortisation forecast values
Accounts classified as Interest Revenue, Interest Expense, Depreciation, and Amortisation are connected to Balance Sheet accounts. Their forecast values are calculated with schedules and journals.
You can determine the schedules and journals used to calculate an account's forecast values:
|
Audit Tax Expense accounts
Accounts classified as Tax Expense accounts (e.g. Corporate Income Tax) are forecast according to the Tax Settings.
You can determine the formula used to calculate the value of a Tax Expense:
|
Learn more about the settings for Tax Expenses from our 'Forecast Tax Expense Accounts' article.
Audit your Balance Sheet Forecast
When viewing your Balance Sheet in the forecasting tool, you can see the breakdown of an account's baseline values and microforecast values.
If you have microforecasts active on the account, you can click on the Microscope icon next to the account name to reveal the baseline values and the microforecast values. You can determine how microforecast values are calculated separately from the baseline values.
If no microforecasts are active on the account, then you will not have a breakdown, as the account's values will only consist of the baseline values.
π‘Smart Tip: You can also audit a microforecast's values.
Audit a Balance Sheet account's baseline values
You can audit a Balance Sheet account's baseline forecast values by viewing the Balance Sheet Layer Detail:
|
π‘Smart Tip: You can include the Balance Sheet Layer Detail view as a table in a Pro report.
Profit & Loss movements impacting the account
Timing profiles and account linkages determine the Profit & Loss amounts that impact a Balance Sheet account.
To see the timing profile that calculates the Balance Sheet movement:
|
For more detailed information about timing profiles and account linkages, see our 'Forecast AR, AP, Unearned Revenue, Prepayments & Cash' article.
Schedules & journals impacting the account
Balance Sheet movements from:
|
are determined by schedules & journals.
To see the schedule or journal that calculates the Balance Sheet movement:
|
Learn more details about the following:
Audit your Cash Flow Statement Forecast
Fathom uses the indirect method to calculate the Cash Flow Statement. Therefore, the Profit & Loss and Balance Sheet movements in the forecast will be used to determine the Cash Flow Statement forecast values.
If your Profit & Loss and Balance Sheet account classifications and forecast figures are correct, then your Cash Flow Statement should be correct.
If you want to determine how the forecast figures for a specific Cash account on your Balance Sheet, then go through the workflow for auditing a Balance Sheet account.
Audit Microforecast values
Microforecast values can be audited from within a microforecast. To open a microforecast:
|
It's important to note that values in a microforecast are based on other microforecast values or drivers. Values from the baseline will not impact a microforecast.
Example: A Formula value rule is used to calculate a Revenue account in a microforecast. The value rule formula references an Expense account as a variable.
Only the microforecast values of that Expense account will be used to calculate the microforecast values for the Revenue account.
Audit Driver values
Driver values can be viewed from the Drivers tab in your forecast. Driver values can differ between your main forecast and a scenario.
To determine how a driver is calculated:
|
Drivers calculated with a formula can reference other drivers as variables. They cannot reference classifications, headings, or accounts from the Chart of Accounts.
Learn more about importing and calculating drivers from our 'Create Forecast Drivers' article.
Forecast Value Audit report
The βForecast Value Auditβ report is a downloadable Excel document and is a complete listing of all of the value rules, timing profiles, schedules, journals, drivers, and notes impacting a forecast's baseline.
To access the Forecast Value Audit report:
|
The report will download with each of the selected options listed on its own sheet in the Excel document. For example, if you selected to download the value rules, timing profiles, and drivers, then the P&L value rules would be listed on the first sheet, the timing profiles on the second sheet, and the drivers on the third sheet.
π Note: The value audit report will only include custom journals. System journals can be seen in the Adjustments section of the Settings.
Next steps
What you want to do: | Where to go: |
Report on your forecast | |
Share your reports with others or enable them to comment on reports |
Learn more