We know, financial forecasts don’t sound that exciting, but they can be an enormously valuable tool in managing your finances. They are future predictions of your business finances, as compared to statements, which provide details of actual results of progress.
The following are five ways forecasting can help your business:
By forecasting on a regular basis, it forces you to continually think about your future and where your business is heading. This will allow you to foresee changing market trends and stay ahead of your competition.
Keep your customers satisfied by providing them with the product they want, when they want it. The advantage of forecasting in business will help predict product demand so that enough product (or staffing) is available to fill customer orders particularly if demand is seasonal.
If you expect to apply for a loan or line of credit, your financial institution will likely ask you to provide them with forecasting reports with your submission.
Forecasting can give you the intelligence to anticipate a downturn in sales and plan for it. Likewise, it can alert you to periods when you can expect an increase in sales, and you can organise additional staffing ahead of time.
If you can’t measure it, you can’t improve it. Setting goals alongside your business forecast allows you to track your progress and plan your operations that are aligned to what you want to achieve.
Your Accountant is the best place to start to undertake a forecast for your business. This is one of the essential services we offer for your personal or business finances. It provides a simple and effective way to oversee your ins and outs and helps predict the financial future, so you can make realistic business decisions going forward.
We help ambitous small business owners grow their personal wealth and achieve their ideal work/life balance.
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Palmers Business Support was founded to help ambitous small business owners grow their personal wealth and achieve their ideal work/life balance. With accountancy as the central pillar of our offering, we take the view that timely accounts and efficient compliance is the bare minimum our cients should expect.