[screenshot:Forecast] [screenshot:Forecast Graph] [screenshot:Forecast Spend Profile]

The accurate estimation of revenues from existing and potential business is crucial to successful budgeting. It helps with the effective planning and allocation of resources. And, if your company has cost reimbursement contracts, it’s a vital component in the definition of provisional indirect rates.

DS Elite streamlines this forecasting process with its Revenue Forecast module. Revenue that will be recognized from existing and potential efforts in the forecasted period can be calculated with the highest precision. Existing efforts are funded projects where actual expenditures are being incurred. Potential efforts come in two variations, opportunities and proposals. Both are sources of possible revenue. Proposals are company responses to the solicitations issued by procuring agencies, whereas opportunities are revenue prospects that exist prior to the origination of a formal procurement process.

All projects, proposals and opportunities are taken into consideration when estimating future business. Actual expenditures incurred prior to the start of the forecast are deducted from a project’s total value to derive the funds that remain for it. Those funds are apportioned over the remaining months of the project based on a user defined spend profile. Opportunity and proposal funds are apportioned in the same manner - monthly, based on user defined spend profile. Their total values are then adjusted based on the likelihood of receiving those funds.

The Revenue Forecast module also estimates personnel needs based on the labor projections within the forecast for all projects, proposals and opportunities. Staffing levels are quantified for each effort based on their respective labor rates, monthly direct labor hours and success probabilities.