BUSINESS FORECASTING SERVICES
No doubt you’d love to know where your business will be financially in three to five years. Of course, no one has a crystal ball, but we can help you develop forecasting tools to project the direction of your business.
SETTING THE RIGHT DIRECTION FOR YOUR BUSINESS
A robust financial business forecast is not a planning document but an item which is used to project the financial performance of your business. It can help you understand the viability of a business venture or give external investors an idea of how a business will perform following the effects of investment. The forecast could be part of a business plan or it may stand alone but, whatever you need it for, we can help you prepare it.
Once you have your financial forecast in place you will have to budget to ensure your cash flow remains in line with your projections. Cash flow management is essential to your business operations.
Combined with our wide-ranging experience gained over many years advising clients, this means we can identify early warning signs of cash flow going off track and advise what to do to improve it. In short, working together with us we can increase the attractiveness, functionality and profitability of your business.
We’ve grouped together some helpful information on business and cashflow forecasting.
When it comes to future expectations of their profit and loss, in our experience business owners tend to know their business inside and out. They know what margin they will make on each product or service that they offer and have a good understanding of their overheads.
What business owners do not necessarily know inside and out though, is how and when changes (however small) to sales, purchases and other general business costs will affect their bank balance. Whether the impact is positive or negative, the phrase ‘turnover is vanity, profit is sanity and cash is king’ has never been so relevant than to the value of cashflow forecasting.
In summary, good cashflow forecasting helps a business owner to:
- See when money is coming into / going out of the business
- Predict regular expenditure and plan ahead for cashflow bottlenecks.
‘Three-way forecasting’ brings together your profit, balance sheet and cashflow data together into a single model and will be bespoke to your business. This data ‘link’ can give your business a fuller picture on the assets and expenditure that may not be captured in your cashflow analysis but appear elsewhere.
- It enables clients to make informed business decisions
- To plan for the future
- To compare their actuals with budgets on a regular basis to see why they are potentially under achieving, and what they can improve
- A cashflow forecast is imperative for businesses that want to grow.
- It can be used to increase profitability and reduce risk within businesses.
Good cashflow forecasting starts with great management information. Here’s how we help business owners to develop reliable ‘near real-time’ business data for robust forecasting that feeds better business decisions:
- We get to know our client’s businesses inside out
- We sit down with them and go through their business and its processes in detail
- We obtain an understanding of how every single element of the business works together to provide the product/services that the client offers, and we analyse how this turns into cash
- We obtain an understanding from our clients of their future expectations and how they intend to achieve these
- We will also consider their current reporting to ensure it is useful to management and suggest improvements where necessary
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“We have used Ledger Sparks for over 10 years and found the levels of service to be high. As well as the usual compliance activity we use them for general business advice and assistance with bookkeeping when required. A very professional and friendly firm providing prompt response’s to business queries which is good for all SME’s.”
Colin Quigley, Director, Ashley Group