What are the benefits of forecasting?
There are many benefits to forecasting for your business.
First and foremost is that you’re more likely to maximise your profits if you are able to accurately project your revenues and expenses.
Additionally, accurate forecasting helps you to identify potential opportunities and manage your cashflow. And when you have this information you are able to make educated decisions at the right time for your business.
Here are some examples of questions that an accurate forecast of your cash flow could help you answer:
How do you create a forecast?
The short answer is you don’t have to do it manually anymore.
Forecasting Apps, such as Futrli, mean that the complex, manual time-consuming forecasting is a thing of the past. Forecasting is now possible with the click of a button.
An added benefit of using Futrli to forecast, is that you can test out your decisions before you make them.
Using automated predictions means you have a second brain on your business 24/7.
And the information is presented in chart format, making it easy to understand.
How far into the future should I forecast?
Forecasts are most beneficial for looking at the next year. They should be used in the short term for immediate planning and decision making and medium to long term to assess and extrapolate current trends.
It’s important to remember that the further you look into the future, the less accurate your cash flow forecast will be as there are too many unknowns yet to pass.