9 Best Forecasting Software for Professional Services Firms

The professional services sector is transforming, propelled by technological advancements and a growing focus on customer-oriented experiences that enhance profitability.

The 2023 Professional Services Maturity Benchmark Report reveals that over the past five years, average revenue growth has been 10.6%, maintaining stability throughout 2022.

This trend underscores a shift towards prioritizing value and quality in evaluating the success of services, particularly in professional services revenue forecasting.

Rapid and precise revenue prediction is crucial for businesses to effectively manage their budgets, inventory, and staff levels.

By making accurate forecasts, companies can establish both ambitious and realistic targets. Delaying revenue measurement until the completion of a project, order, or service hinders a company's ability to make timely improvements, often when it's already too late.

What is forecasting software?

Forecasting software encompasses applications that evaluate historical and current data and trends to predict future outcomes. This type of software aids companies in making knowledgeable decisions regarding objectives and resource allocation.

Data analysis and predictive modeling are core components of modern forecasting tools, which utilize historical data to discern patterns and trends. 

The customization and flexibility of these software systems are also noteworthy. Different industries have varying forecasting needs, and effective forecasting software can be tailored to meet specific requirements, whether in finance, marketing, supply chain management, or other sectors. Even healthcare enterprises can harness the power of specialized healthcare revenue cycle management platform for revenue forecasting.

How to Forecast Revenue for Professional Services Firm?

So, how exactly do consulting firms predict their revenue? The most accurate answer is probably a combination of various methods, forming their professional services financial model. 

Each professional services organization has its unique way of forecasting revenue, employing a diverse blend of the techniques previously mentioned to determine their final figure.

An example of this in practice could be the integration of the backlog revenue forecasting model, a bottom-up forecasting approach, and the pipeline revenue forecasting method. 

Firms favoring this method typically rely on revenue management and forecasting software, often through a professional services automation (PSA) tool, to compile and verify their forecasts.

For work that is standardized and already secured, organizations might use their backlog for an overarching view of revenue forecasts. For bespoke, committed tasks, they might add bottom-up forecasting, or a resource-driven plan, into the mix.

Following this, incorporating pipeline projects becomes valuable. This involves considering factors like opportunity size, start date, duration, and likelihood to model potential revenue from uncommitted work. This approach allows for precise timing in revenue management forecasting and supports capacity planning for delivering the work, including various sales forecasting types.

 Since resource-driven models take into account various factors beyond just resources (like job titles, departments, offices), the revenue forecast becomes a vital tool in numerous decision-making processes.

Read More: Forecasting Project Management : What You Need To Consider 

What are the Types of Revenue Forecasting Models?

Businesses typically utilize four primary types of revenue forecasting models, each with unique advantages and limitations. Often, adopting a hybrid approach that combines different professional services forecasting models can lead to more precise predictions.

1. Pipeline Revenue Forecasting Model:

This model focuses on analyzing key revenue drivers to forecast a company’s future sales trajectory. It involves a detailed examination of the sales pipeline, understanding that only a portion of the opportunities will convert into actual revenue.

2. Backlog Revenue Forecasting Model:

Similar to the pipeline model in its revenue prediction approach, the backlog model also considers total revenue from contracted work not yet delivered. 

A key difference is that the backlog model is less reliant on uncertainty and estimations, offering a more realistic distribution of revenue growth over time.

3. Resource-Driven Forecasting Model:

Also known as bottom-up forecasting, this approach allows teams to use their in-depth knowledge of operations to plan work in alignment with available resources for optimal utilization.

 It requires a thorough understanding of the project pipeline and continuous monitoring for adjustments to manage capacity constraints, bottlenecks, and surpluses.

4. Revenue Forecasting Based on Historical Performance and Change Effects:

Organizations with recurring revenue models, like managed service providers, often find the historical performance revenue forecasting model very effective.

 This method is based on the assumption that a company will generate at least the same revenue as in a similar previous period under comparable conditions. It uses past performance as a benchmark to assess how current factors might influence revenue.

Read More: Top 10 Sources of Recurring Revenue for Digital Marketing Agency 

9 Best Forecasting Tools for Professional Services Firms

1. Hubstaff

HubSpot's forecasting software is crafted to assist teams in predicting future revenue and overseeing their pipeline. It enables tracking of progress towards forecasted targets. 

Features

• Automatic consolidation of custom forecasts from representatives and managers into a unified, high-level forecast for management.
• The capability to delve into the details of individual pipelines and forecasts, contingent on the access and permissions granted to each user.
• The feature to directly extract data from the CRM system, allowing the creation of multiple pipelines. This enables both sales and service teams to generate their own forecasts.
• A mobile application that provides the convenience of reviewing and submitting forecasts while on the move.

2. ClickUp

ClickUp offers an extensive suite of forecasting functionalities that enhance communication, collaboration, sales efficiency, and productivity for sales teams. Many sales professionals favor ClickUp due to its user-friendly interface, effective capacity planning, and customizable options.

Effortlessly monitor your KPIs with the Demand Planning KPI Tracking Template. This tool aids in managing customer demand, inventory levels, and supply chain operations.

Features

• Customer Interaction Management: Utilize ClickUp CRM software to handle customer interactions and relationships, with the added benefit of integrating with other non-ClickUp tools.
• All-in-One Solution: ClickUp serves as a comprehensive platform, encompassing project management, communication tools, sales enablement, project dashboards, and accounting functionalities.
• Variety of Templates: Access a wide range of sales forecasting and CRM templates tailored to suit your business needs.
• Performance Assessment: Use ClickUp’s Sales Forecast templates to forecast sales revenue, monitor your sales pipeline, and evaluate sales performance.
• Accounting Workflow Management: ClickUp Accounting streamlines accounting processes, including invoicing, billing, and financial reporting.

3. Zendesk

Zendesk Sell, a key component of the Zendesk CRM suite, enhances sales forecasting capabilities, allowing for precise sales forecast data access while managing leads. It offers a range of features enabling sales teams to import, monitor, and evaluate their sales activities with reliable predictions.

This tool streamlines financial planning processes. Users can tailor forecasts, assess probabilities of winning deals, and forecast closing dates for both new and existing deals.

Features

• Custom Forecasts: Users can generate tailored forecasts and estimate the success rates of various deals.
• Seamless Integration: Facilitates easy access and integration with a variety of data sources.
• Real-Time Monitoring: Offers capabilities to create and track pipelines as they evolve.
• User-Friendly Design: Consolidates all tasks in one place, from identifying and attracting to engaging with potential clients.

4. Aviso Predict

Aviso Predict offers a revenue forecasting solution claiming an impressive 98% accuracy in sales forecasts. This tool is tailored to facilitate the creation of highly adaptable forecasts, enhanced by AI-driven insights into sales pipelines. 

Features

• Time Series AI engine,
• 'WinScore Insights' that estimates the likelihood of deal closure and identifies factors that might impact its success, and scenario forecasting. 
• This latter feature enables the incorporation of 'what-if' scenarios, allowing for the generation of best-case, probable, and worst-case forecasts to accommodate various variables.

5. Pipedrive

Pipedrive's revenue forecasting feature integrates artificial intelligence and automation to aid teams in creating precise forecasts.

Users can establish and track forecasts through the platform's revenue forecast view, while the forecast reports function enables the generation of reports based on various conditions like forecast periods, deal status, pipeline, probability, team, and others. 

Features

• View deal progression with a status bar under each deal, indicating its position in the sales pipeline.
• Utilize drag and drop capabilities for effortlessly updating expected deal closure dates.
• Set deal probabilities for different pipeline stages or specific deals.

6. Weflow

Weflow, a forecasting tool designed for Salesforce, tracks modifications, evaluates, and offers insights into the performance of a business's sales process. It effortlessly integrates various elements such as emails, calls, and tasks with Salesforce.

Additionally, Weflow enhances collaborative sales efforts with tools for forecasting, waterfalls, and quarterly revenue predictions.

Features

• Salesforce Compatibility: Optimally designed for users of Salesforce.
• Alerts and Notifications: Ability to set up deal alerts and notifications within Salesforce.
• Cost-Effective: Weflow is available for free for up to five users.

7. Clari

Clari is a software solution that facilitates the creation of forecasts based on current data and predictive insights. It boasts several compelling features, such as an inventory dashboard that offers straightforward access to information about active deals in a forecast.

The software emphasizes single computations to minimize human error. Any data entered into Clari automatically syncs with your CRM application.

Features

• Predictive Forecasting: Provides real-time visualization of forecasts and enables quarterly predictions with its predictive forecasting capability.
• User-Friendly: Delivers insights in formats that are simple and easy to comprehend.
• Sales Cycle Efficiency: Ideal for B2B sales leaders aiming to expedite the sales process.

8. Outreach Commit

Outreach Commit is a platform offering sales forecasting and analytics. It utilizes real-time data and artificial intelligence to give sales representatives instant pipeline analysis.

Features

• Precise coverage measurement through AI, which examines previous deficits and excesses.
• An AI system that tracks more than 100 indicators to proactively pinpoint deals that may be at risk.
• A scenario planner designed to equip your team for both the most favorable and least favorable outcomes.

9. Intelligence 360

Intelligence360, a revenue optimization platform, provides an AI-based sales forecasting solution. In 2022, Mediafly, the operator of Intelligence360, acquired InsightSquared. This merger combines the predictive analytics of InsightSquared with Mediafly's insights, enhancing the sales platform.

Features

• Hierarchical Pipeline Visibility: Sales managers gain full insight into a rep’s pipeline and sales activities. Intelligence360 also offers the functionality for managers to assign 'actions' to reps within the platform.
• Efficient Forecast Submissions: Representatives can effortlessly submit their forecast figures, which are then automatically consolidated.
• Managers have the ability to review, approve, or modify these submissions as needed.
• Automated Activity Data Capture: Intelligence360 aids reps in tracking and attributing both prospect interactions (like phone calls and emails) and engagements. This feature provides valuable insights into the impact of sales activities on pipeline outcomes.

Integrate ClientVenue for Enhanced Project Management in Forecasting

While discussing the realm of forecasting software for professional services, it's crucial to acknowledge the role of comprehensive project management tools like ClientVenue. ClientVenue, a robust project management software, plays a pivotal role in augmenting the forecasting process.

Read More: Top 7 Professional Service Project Management Software Solutions 

1. Seamless Integration with Forecasting Tools

ClientVenue seamlessly integrates with various forecasting software, providing a unified platform for managing projects and forecasts. This integration ensures that project milestones, resource allocation, and financial data are in sync, leading to more accurate and reliable forecasting.

2. Real-Time Project Tracking

The software offers real-time tracking of project progress. This feature is vital for forecasting as it provides up-to-date information on project status, resource utilization, and potential delays, allowing for more dynamic and responsive forecasting.

3. Enhanced Collaboration and Communication

 ClientVenue fosters effective team collaboration and communication, which is essential for accurate forecasting. By centralizing communication and project updates, teams can better anticipate project needs and outcomes, directly feeding into more precise forecasting.

4. Data-Driven Decision Making

 With its robust analytics and reporting features, ClientVenue empowers professional services firms to make data-driven decisions. The ability to analyze project performance and trends directly contributes to more informed forecasting, ensuring that future projections are based on concrete historical data.

5. Customizable to Professional Services Needs

 ClientVenue's customizable nature makes it an excellent fit for various professional services sectors. Whether it's finance, consulting, or IT services, the software can be tailored to meet the specific project management and forecasting needs of these industries.

Also Read: Top 4 Small Business Agency Project Management App

Conclusion

Forecasting software is an invaluable asset for professional services firms, offering sophisticated tools to predict future trends, manage resources, and make informed strategic decisions. 

With the integration of technologies like AI and machine learning, these systems provide detailed, accurate forecasts based on a variety of models tailored to specific industry needs. 

The addition of comprehensive project management tools, such as ClientVenue, further enhances the efficacy of these forecasting solutions by ensuring seamless data integration and real-time project tracking. This synergy between forecasting software and project management tools enables firms to navigate the complexities of their respective markets with greater confidence and precision.