The lack of planning and control of cash resources is the reason often given for the failure of many small businesses. By undertaking good financial forecasting, businesses can help reduce this business risk.
Financial Forecasting (often called a business plan, cash flow or forecast) acts like a map – it can help you plan a long road journey, and help you achieve your goals and get your business to where you want it to be.
It’s simply a financial plan or budget for your business. It is an estimate of two essential future financial outcomes for a business – your projected income and expenses.
Predicting the financial future of your business is not easy, especially if you are starting a business and do not have a trading history. This is where Broadwing Accountancy can help you; we are experienced in preparing financial forecasts that are both achievable yet still challenging.
So, what are the advantages of an effective financial forecast?
- Demonstrates the financial viability of a new business venture. This allows you to develop a model of how your business might perform financially if certain strategies, events and plans are fulfilled
- Allows you to measure the actual financial operation of the business against the forecast financial plan and adjust where necessary
- Allows you to guide your business in the right direction and take control of your cash flow
- Provides a benchmark against which to measure future performance
- Identifies potential risks and cash shortfalls to keep the business out of financial trouble
- Provides an estimate of future cash needs and whether additional private equity or borrowing is necessary
- Assists you to secure a bank loan or other funding, lenders and investors require financial forecasts to show your capacity to repay the loan
Broadwing Accountancy offer business planning and financial forecasting services to businesses that are looking towards the future and want to plan how they can grow and develop.
GET IN TOUCH if this could benefit you by calling Brian Munjanja TODAY on 01604 328328 or by email [email protected].
