Why do finance, sales and operations report different numbers?
They count different events on different dates. Some differences are legitimate. The problem starts when nobody can explain how the figures relate.
Finance, sales and operations report different numbers because they count different events, use different dates and apply different definitions and adjustments. Some differences are legitimate. A reporting problem starts when teams cannot explain how their figures relate, or when one agreed KPI is calculated in more than one way.
At month-end, finance collects actuals from subsidiaries that run different ERPs. Forecasts add another set of spreadsheets and CRM inputs. Before anything reaches leadership, finance has to bring the figures together, explain the differences and say why actuals moved away from the forecast.
If you lead forecasting, planning and analysis, or work as a finance manager or financial controller, you need data that is consistent enough to use and a way to spot the submissions that need correcting. Data and systems colleagues can help trace the technical causes.
