Home Budgeting How Crowdsourcing Can Help With Earnings Forecasts

How Crowdsourcing Can Help With Earnings Forecasts

by S1m
How Crowdsourcing Can Help With Earnings Forecasts

If you’re a business owner, then you’ll likely already know the importance of earnings forecasts, which can help you to have a better grasp on the financial side of your operations. If you can predict how much you’ll earn in the future, then you can make better decisions relating to your business today. There is a problem with earnings forecasts, however: they haven’t, historically, been as reliable as they need to be. After all, the data contained within these earnings forecasts can play a crucial factor in the decision-making process. If the information turns out to be insufficient or flawed, then there’s a chance that the decision that’s taken will turn out to be the wrong one.

How Crowdsourcing Can Help With Earnings Forecasts

So finding a reliable and better way to produce earnings forecasts is important. But how do you do this? One possible solution that has been proposed has been for financial experts to use crowdsourcing. This, like all crowdsourcing projects, involves using the input of large quantities of people, with the idea being that more reliable data would be gleaned if it came from a lot of people, rather than just a few. Typically, this information is collected by using the internet, and can be paid or unpaid. 

To figure out whether this was a good system for this process or not, Professor Rick Johnston of the University of Alabama Birmingham conducted research to see the effectiveness of this method. You can take a look at what they found by reading the information on the infographic below. 

Infographic Design by University of Alabama Birmingham University of Alabama Birmingham

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