Many businesses often focus most their efforts and time on maintaining the service and ensuring their business runs smoothly day-to-day. For some, this will naturally swallow majority of their time, leaving almost no space in the schedule for forecasting and planning ahead. But why is it so important to make time or find someone who will pay attention to what the future holds for your business?

Financial forecasting helps your business grow, set goals, prepare and prevent.

It’s particularly important for established businesses that are evolving, experiencing a rapid growth or repeated cash-flow difficulties which could easily be avoided. Having accurate and effective forecasting of business finances including current revenue, revenue potential, and expenses helps to ensure the organisation runs smoothly.

Financial forecasting helps you make much more informed decisions and is crucial when planning major changes such as investing into new premises, introducing a new department or product, changes in your business plan. Preparing a clear overview of where your business is heading can help you avoid costly mistakes and set achievable goals and targets.

Financial forecasting estimates your company’s future financial outcomes by analysing historical data, so in order to be as accurate as possible, you will need to be fairly disciplined when it comes to keeping track of your finances. Financial forecasting also takes under consideration your company’s values, mission, operations and a variety of external factors. In order to be as accurate as possible, it’s important to remember that your forecasts should be regularly updated when there is a change in your operations, inventory or business plan.

If this is something that you believe would be beneficial to your business, please speak to our team.

Whether you trade as a sole trader, a partnership or a company, we will prepare your accounts ensuring compliance with all your statutory obligations. But beyond compliance, your accounts are important for letting you know how your business is performing. No matter how big or small your business, we can aim to ensure your accounts are useful to you.