Forecasting & Modelling

Have you thought about your financial future and where your business may be in three, six or 12 months? Have you planned out your future cash flow and tried to maximise your spending and investment?

Financial forecasting helps you to predict your spending, maximise your profits and create a genuine roadmap for success.

We can help you with your forecasting and modelling

Bad financial planning and a lack of control over your cash flow are the most common reasons for businesses failing. Management accounts can tell you where the business has been, and real-time reporting can tell you where the business is now. Financial forecasting and modelling tells you where the business will be in the future – and that’s vital information for you and your management board.

Forecasting and modelling helps you by:

• Keeping you on top of your cash flow.
• Reducing your business risks.
• Giving you a view of your future profits and spending.
• Providing information that allows you to prioritise your cash and resources.
• Giving you a better handle on your profits.

Looking to the financial future of your business

We can provide you with a variety of different forecasts that tell you about the expected performance of specific areas of the business. And each one is a vital part of your financial modelling process.

• Profit & Loss (P&L) forecast– this focuses on your sales forecast, cost of sales and overheads and records when income and expenses are earned rather than when they’re paid for.
• Cash Flow forecast– this is driven by the assumptions of your trading and cost levels in the P&L forecast, but based on the timings of when your receive cash or payment.
• Balance Sheet forecast– this takes your Balance Sheet at the start of the forecast period and highlights how the interaction of the P&L and Cash Flow forecasts changes the Balance Sheet on a monthly basis.
• Source and Application of Funds Statement– this is similar to the Cash Flow forecast but presents your information in a more condensed way. It makes it easier to see where money is coming from and the effect this may have on your working capital.

And forecasting is just the start of the process. We also bring our own expertise and insight to the table so we can guide your planning, help you avoid any common financial pitfalls and maximise the money that’s coming into the business.