What's the difference between budgeting and forecasting in Tenzo?

Budgeting and forecasting are tools that businesses use to establish their estimated sales.

Sometimes budgeting and forecasting are two words that are used interchangeably. In Tenzo there are distinct differences between these two concepts. 

Budgeting

Budgeting is your longer term sale projection often set 6 months to a year out by your Finance or HQ team.

Your Tenzo Administrators can load your budget and re-budgets as often as needed.

This creates a sales budget to compare actual sales to determine how you are performing verses your business profit and loss expected performance. 

You can have your budgets loaded into Tenzo by following the steps here:                         

Forecasting

Forecasting is your short term estimate of your sales forecast. 

Sales forecasts are usually set one to two weeks out by GM or Operations Leads. By using your historical sales, weather, events and holidays, Tenzo's forecasting engine provides a data-driven baseline for your locations sales forecasts up to 3 weeks out for GMs to adjust and challenge based on their location-specific insights. 

Your managers are able to change the Original Tenzo Forecast and log the reason for their adjustment via our Forecasting tool here. 

With the below card, you can identify your Mean Absolute Error MAPE by comparing the Original Tenzo Forecast with the Manager's Adjusted Forecast & HQ Sales Budget with your actual sales. 

We've been working hard to continuously improve our forecasting tool and provide you with high accuracy, if you've got any feedback on this or if you have any questions please let your Customer Success Manager (CSM) know or drop us a note at [e-mail].

#budget #forecasting