What is a Subscription Revenue Forecast Template?
A Subscription Revenue Forecast Template is a crucial planning tool for businesses with substantial subscription revenue. It enables executives and managers to estimate future recurring revenue by utilizing drivers like New Deals, Deal Size, and Churn. This type of forecast model typically consists of expandable columns for monthly detail and covers a 10-year timeframe. An example of this template is provided below.
Purpose of Subscription Revenue Forecast Models
The primary objective of using Subscription Revenue Forecast Models is to accurately predict revenue streams for the upcoming months and years. By incorporating these models into the Financial Planning & Analysis (FP&A) Department, companies can enhance their planning related to annual recurring revenue (ARR) streams and customer retention. This can also help reduce the risk of lacking management focus on customer-centric tactics.
Benefits to Users
The Subscription Revenue Forecast Template provides significant benefits to business users, helping them make better decisions and become more efficient in their roles. By accurately forecasting revenue streams, executives and managers can make informed decisions about resource allocation, product development, and marketing strategies. They can also identify potential risks and adjust their plans accordingly, which can lead to greater efficiency in operations. In addition, the template can help users visualize data trends and track key metrics, allowing them to monitor performance and identify areas for improvement. By leveraging these insights, business users can make data-driven decisions and optimize their processes, leading to improved productivity and profitability.
Subscription Revenue Forecast Model Example
Here is an example of a driver-based Subscription Revenue forecast template that calculates 10 years of future revenue streams.
You can find hundreds of additional examples here.
Who Uses This Type of Forecast Form?
The typical users of this type of forecast form are: The Board of Directors, Executives and Sales Managers.
Other Forecast Forms Often Used in Conjunction with Subscription Revenue Forecast Models
Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Subscription Revenue Forecast Models, along with annual budgets and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.
In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Technology Solutions and More Examples
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards
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