Interpreting the Results of Your Cost Center Budgets

Once you have built your Cost Center Budgets, it’s important to understand how to interpret the results and make informed decisions using the forecasting model in Brightflag.

🔍 Forecasting Model

Every Cost Center Budget includes a forecast—provided the budget hasn’t already been exceeded. This forecast is powered by a data science model that analyzes your historical budget and spend data.

How the Forecasting Model Works:

• The machine learning model reviews historical spend data associated with the budget.
• Based on this data, it predicts future spending within the budget period.
• Brightflag then generates a custom forecast and, if applicable, a predicted date of overrun with a 95% confidence interval.

Important Notes on Forecasting:

• The model requires at least 6 months of spend data to generate a reliable forecast.
• If insufficient data is available or if uncertainty is too high, you will see a "No Forecast Available" message.

📈 Leveraging the Results

1️⃣ Share Forecasts with Your Finance Team

• Collaborate with your financial team to align budgets and projections.

2️⃣ Discuss Potential Overruns

• If your budget is predicted to overrun, engage with department leads within your legal function to discuss next steps.

3️⃣ Get Expert Guidance

• Reach out to your Brightflag Customer Success Manager for best practices on managing budget forecasts effectively.