Industry insights
Why forecast accuracy has become a top CFO priority
What Gartner’s findings reveal about near-term finance priorities
Forecasting has always been central to finance, but its importance has intensified significantly in recent years.
According to Gartner (December 2025), “51% of respondents ranked improving financial forecast accuracy and quality among their top urgent CFO actions over the next six months.”
This reflects a clear shift in focus: finance leaders are prioritising improvements in forecasting as part of a wider effort to improve decision making, planning agility, and financial control in the short term.
What the data is actually showing
It’s important to understand the context behind this figure.
The Gartner research asked finance leaders to rank their top five most urgent actions for CFO success over the next six months.
Within that ranking exercise:
- 51% included improving forecast accuracy and quality in their top five urgent priorities
- It sits alongside other high-priority actions such as cost optimisation, capital allocation, and improving finance efficiency
So the insight is not a standalone sentiment, it reflects near-term prioritisation within a broader set of CFO pressures.
Why forecast accuracy is rising in priority
While the research is based on ranking, it aligns with a broader set of pressures finance teams are facing:
1. Shorter planning cycles
Businesses are being forced to make decisions faster, often with incomplete information.
2. Greater uncertainty
Volatility in markets, costs, and demand makes forecasting harder to stabilise.
3. Increased leadership expectations
Boards and executive teams are expecting more frequent and more reliable forward-looking insight.
4. Pressure to link finance to decision-making
Forecasts are no longer just reporting tools, they directly influence operational and strategic decisions.
The challenge behind improving forecast accuracy
Even though it is a top priority, many organisations still face structural challenges in forecasting:
- Data is spread across multiple systems
- Assumptions differ between departments
- Forecasts rely heavily on manual input
- Updates are often periodic rather than continuous
As a result, forecasts can quickly become outdated or inconsistent across the business.
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Why forecasting is difficult to improve in practice
Forecast accuracy is rarely just a modelling issue. It is usually driven by three underlying problems:
1. Fragmented data environments
Finance teams often work across ERP systems, spreadsheets, and separate planning tools.
2. Lack of standardised assumptions
Different teams define revenue, cost drivers, and timelines differently.
3. Static planning processes
Forecasts are often updated monthly or quarterly, rather than continuously adjusted.
Together, these factors limit how quickly forecasts can adapt to changing conditions.
How finance teams are responding
In response, many organisations are moving towards more connected and integrated planning approaches.
This typically includes:
- centralised planning environments
- more frequent forecasting cycles
- scenario-based planning (“what if” analysis)
- improved alignment between actuals and forecasts
- reduced reliance on manual consolidation
The aim is not just to improve accuracy, but to improve responsiveness and consistency of financial planning.
Where Oracle EPM fits into this shift
In many organisations, ERP systems such as SAP S/4HANA continue to manage transactional and operational finance data.
Planning and forecasting, however, are increasingly supported by dedicated performance management tools such as Oracle Enterprise Performance Management.
This allows organisations to separate:
- ERP systems = record financial data
- EPM systems = plan, forecast, and analyse that data
This separation helps finance teams improve forecasting without disrupting core financial systems.
What improved forecast accuracy enables
When organisations improve forecast accuracy and consistency, they typically see:
- more confident decision-making
- better alignment between finance and operations
- improved cash and resource planning
- fewer unexpected variances in performance
- stronger support for strategic planning
Ultimately, finance teams spend less time explaining variances and more time supporting business decisions.
What this trend actually signals
The Gartner finding does not suggest forecasting is a new challenge.
Instead, it highlights that:
- forecasting is becoming more urgent in the short term
- finance leaders are prioritising improvements quickly (within a 6-month horizon)
- forecast quality is directly tied to CFO performance expectations
It reflects a shift toward faster, more adaptive financial planning processes, rather than traditional periodic forecasting cycles.
In conclusion:
Forecast accuracy has become one of the most urgent near-term priorities for finance leaders.
According to Gartner (December 2025), 51% of respondents included improving financial forecast accuracy and quality among their top urgent CFO actions over the next six months.
The emphasis is not on forecasting itself, but on improving how quickly and effectively finance teams can respond to change.
As expectations on finance continue to increase, the ability to produce reliable, consistent, and timely forecasts will remain a key area of focus for CFOs.
FAQ
Q: What is forecast accuracy in finance?
A: Forecast accuracy measures how closely financial forecasts match actual business performance.
Q: Why do CFOs care about forecast accuracy?
A: Because it directly impacts planning, budgeting, cash flow, and strategic decision-making.
Q: How can companies improve forecast accuracy?
A: By integrating data sources, standardising assumptions, and using connected planning tools like Oracle EPM.
Looking to explore what this could look like for your organisation?
If you’re currently exploring how to improve planning, forecasting, or reporting in SAP environments, we can share practical examples from similar organisations.
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