Maybe demand-driven model isn’t for you, but today is Halloween so like pillowcases filled with candy, 9DOTS offers a lot of options. A bottom up approach is a focus on resource SUPPLY. Estimate potential sales revenue of a product in order to establish the total sales figure.
Answers questions like “how many hours of work can I bill?,” “how many widgets can I get produced?” and “how much crop will my fields yield?”
“Known as an operating expense plan, bottom up forecasts examine factors such as production capacity, department-specific expenses, and addressable market in order to create a more accurate sales projection. Many experts believe this approach is more realistic than top down because bottom up forecasting employs actual sales data, the resulting forecast may be more accurate, which enables you to make better strategic decisions moving forward. (quickbooks)”
Calculate revenue by individual employee based on hours, cost rates, multiplier and utilization rates. 9DOTS provides the functionality to calculate and aggregate these figures to a fiscal year revenue model. Store values for each individual’s hours, expected revenue, direct and indirect labor costs by fiscal period and then calculate and aggregates those values and deliver them to the budget reports. This entire process simplifies and automates previously labor-intensive activities. So, have the pillowcase full of candy and eat it too!
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