Forecasting: taking the guesswork out of your finance strategy.
As a business owner, it’s increasingly difficult to ride out the changing economic conditions and manage the financial ups and downs of doing business in 2024.
According to recent data from the Australian Securities and Investments Commission (ASIC), 11,053 companies went into administration in the 2023-24 financial year.
Knowing what’s around the next corner would be incredibly helpful. This is where forecasting tools and financial projections can become a real game-changer.
Why your small business should embrace financial forecasting.
Good financial management starts with solid bookkeeping and accounting processes. But your accounts only tell you what’s happened in the PAST – not what will happen in the FUTURE.
Financial forecasting takes this historic accounting data and projects areas like cashflow, operating expenses and revenue forward in time. In essence, what you get is a projection of how your finances may look one month, six months or even a year down the line.
Why is this important?
Let’s take a look at just a few of the benefits of using accurate forecasting to manage the financial strategy and health of the business:
Accurate predictions.
Your forecasting software can analyse your historical data and current trends to provide accurate predictions of future sales, expenses and cash flow. These forecasts allow you to accurately see how your finances will look in the future.
How First Class Accounts Ovens & Murray can help: We make sure your bookkeeping and management accounting is always up to date and accurate. This means your financial data is reliable, which is critical for effective forecasting.
Proactive financial management.
Armed with these forecasts, you can quickly see where there’s a need to boost revenue, manage cashflow or optimise your allocation of resources. In short, this information helps you assess and avoid the big finance pitfalls.
How First Class Accounts Ovens & Murray can help: By outsourcing your bookkeeping processes to us, you’ll have access to accurate and timely financial data. This gives you the insights you need to make proactive decisions, without worrying about the time-consuming administrative tasks.
Improved cashflow management.
Forecasting helps you spot any potential cashflow shortages or surpluses. This prior warning gives you time to take cost-cutting action to rebalance cash shortfalls, or find useful ways to reinvest the surplus cash.
How First Class Accounts Ovens & Murray can help: Cashflow forecasting is one of our key services. By working with First Class Accounts Ovens & Murray, you’ll have a clear picture of your current and projected cash position, enabling you to stay ahead of any financial challenges.
Better allocation of resources.
With a deeper understanding of your future financial needs, you can allocate resources like equipment and staff more effectively. This helps to boost growth and expansion, while keeping your finances in a healthy position.
Data-driven decision-making.
With a forecasting solution in your app stack, you have the data, forecasts and reporting needed to make truly informed decisions about your business's financial future, and to review these decisions on a regular basis.
Talk to us about adding forecasting to your app stack
There’s a wide choice of financial forecasting apps out there, all of which can neatly integrate with your existing accounting software and business reporting systems.
Our team at First Class Accounts Ovens & Murray can set up, manage, and integrate solutions like Futrli.
We’ll work with you to choose the best fit for your business and ensure the tools are effectively implemented.
Speak to us about how forecasting can bring clarity to your financial future. With accurate, up-to-date data and the right systems in place, you’ll feel more confident about tackling whatever comes next.