This user-friendly tool harnesses the power of Prophet to help you forecast revenue based on historical sales data.
How to Run the Tool:
- Prepare Your Data:
Create an Excel file (.xlsx) with two columns: one labeled “Date” and the other “Revenue.” Ensure dates and numbers are formatted correctly.
- Organize Your Folders:
The script automatically creates a “Revenue Forecast” folder on your Desktop with “Input” and “Output” subfolders. Save your Excel file in the “Input” folder. - Execute the Script:
Run the Python script. If multiple Excel files exist in the “Input” folder, you’ll be prompted to select one. The tool cleans and validates your data, fits a forecasting model, and generates a 12-month forecast. Results are saved as a plot and an Excel file in the “Output” folder.
Key Limitations to Consider:
- Model Assumptions:
Prophet’s default settings assume that historical trends, including seasonality and growth patterns, will continue. This might not capture sudden market shifts or business-specific events (such as, marketing, discounts, and so on). - Data Quality:
The reliability of the forecast depends on clean, consistent input data. Outliers, missing values, or format issues can affect accuracy. - Context Matters:
This tool is intended as a baseline projection. For critical financial decisions, supplement these insights with scenario analysis and expert advice.
In summary, this revenue forecasting tool is nice starting point for planning finances and getting an idea on revenue development. However, it is important to consider its inherent limitations. Business decisions require a more sophisticated analysis and planning.
Code download:
Dummy data:
