INTRODUCTION

Waterfall charts track your actual results compared to both your original Plan for the year
as well as your later forecasts.

They are typically used to track revenues, bookings,or cash balances, . But, can also be used
to track headcount and units shipped.

Many directors will tell you that the waterfall chart is the most significant report in their
board package.

METHODOLOGY

Input the annual plan numbers in the top row.

At the end of each month, put in the actual results for that month, and the revised forecast
for the rest of the year.

This will let you see the change in the totals for the year as well as how accurately you forecast
in the prior months,

WORKBOOK CONTENTS

The workbook includes two worksheets

Introduction
Waterfall chart
 XYZ CORP
WATERFALL CHART -- REVENUES
Through May

Current
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Forecast

PLAN 150 225 350 225 300 375 200 225 400 300 350 400 3,500

Jan 175 225 350 225 300 375 200 225 400 300 350 400 3,525
Feb 175 215 350 225 300 375 200 225 400 300 350 400 3,515
Mar 175 215 300 200 250 300 225 250 400 250 300 350 3,215
Apr 175 215 300 250 250 300 225 250 400 250 300 300 3,215
May 175 215 300 250 145 310 240 260 410 275 150 375 3,105
Jun PROJECTED RESULTS FOR REST OF
0
Jul YEAR, UPDATED MONTHLY 0
Aug ACTUAL RESULTS 0
Sep 0
Oct 0
Nov 0
Dec 0

LEGEND
123 Financial plan -- set at end of prior year
456 Projected results for rest of year, updated monthly

234 Actual results this month -- better than Plan

345 Actual results this month -- below Plan

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