What is it?
A forecast shows the planned financial performance of your business over a period of time, typically 12 months. Based on the business plan, it drills down into the detail of the financial numbers.
It comprises three key documents - a profit and loss account, cash-flow forecast and monthly balance sheet. Each is fully integrated, and together they comprise an essential working document to guide and monitor the financial performance of your business.
With our business experience and financial knowledge, we will ensure that your forecast is realistic and that the three summaries are entirely consistent - in other words that the forecast has integrity. This is essential if it is to be useful, and even more critical if it is likely to be shown to a funding provider in support of finance.
Why do I need it?
Are you ever surprised by your year-end accounts? Or do you find yourself having to approach your bank manager asking for an increase in the overdraft? If the answer to either of these is 'yes', you would benefit from having a forecast.
It is good practice for any business to have forecasts prepared every year. The forecast is the practical working of the business plan, distilling strategies into actions and anticipated results. It allows ongoing comparison of the results expected versus those actually achieved, enabling corrective action to be taken as soon as necessary.
If, for example, there has been a fall in your gross margin due to poor pricing or low productivity, failing to spot this until your year-end accounts are produced could cost many thousands of pounds. With a forecast and management accounts, you will spot the trend within one month.
You will almost certainly require a forecast if you are seeking to raise finance.
Who's it for?
- Growing businesses with turnover in excess of £100,000.
- Any business seeking to raise finance.
- Managers who want to know the financial standing of their business.
- Those who don't like surprises.