In financial planning, what does the term 'Overlay Actuals Data' commonly refer to?

The term 'Overlay Actuals Data' in financial planning refers to the process of integrating actual financial data with forecasts. This approach allows organizations to refine their forecasting models by comparing the predictions made with the actual performance observed over the same period. By overlaying actuals onto the forecast, planners can gain insights into performance variances, adjust future predictions, and improve the accuracy of financial planning. This method serves to provide a more nuanced view of financial performance, enabling better decision-making based on real data.

Combining actuals with forecasts provides a critical feedback loop that can lead to enhanced accuracy in financial projections and improved alignment between expectations and reality. This practice is an essential step in the planning process, as it helps organizations adapt their strategies based on what has transpired, ultimately leading to better outcomes in financial management.