As any small business owner knows, running a business isn’t all sunshine and rainbows and sometimes you want (or need) a business forecast. Just like Australia’s unpredictable summer weather, from time to time, droughts or downpours can occur, and often they come out of nowhere. However, that doesn’t mean they have to be unpredictable.
So before you pack a raincoat and umbrella, why not take control and prevent any unexpected blows with business forecasting? Whether your cash flow is looking right as rain or if it’s seen better days, an annual business forecast will empower you to notice any changes in the air.
What does your business forecast hold?
Take a rain check.
Making educated predictions on the future of your business will allow you to prepare for what’s ahead and give you a chance to change direction to avoid any storms.
As small business accountants, we’ll look at the suitability of your profit margin and determine whether or not there are enough sales in the pipeline to support your profit goals. If you have any debt to clear, we’ll be able to tell you how long it will take to pay off with your current and future circumstances and small business financial projections.
If you’re hoping to get a loan from a bank down the line, your business forecast will shed light on whether or not you’ll be able to meet the requirements. If it’s not looking likely, your forecast will give you time to implement changes before the banks can rain on your parade.
Save for a rainy day.
When it comes to managing your cash flow, you shouldn’t throw caution to the wind. Business forecasting can tell you exactly how much money you can take out every month without ever falling short. Making predictions on how much profit you will make this financial year will also ensure you set aside enough cash for tax, so you’ll never be blown out of the water when the tax bill arrives again.
Make hay when the sun shines.
Is your business running as efficiently as possible? If your business’s cash flow is all fine and dandy, financial forecasting has a whole range of other benefits, including recognising any inefficiencies in your current processes. Forecasting also provides insight into where savings can be made in your business, whether or not your pricing structure needs refreshing, and if you can make a better return by investing more.
Why are projections important for small businesses?
As Strategic Accountants, we can make educated projections on what the future of your business looks like so you can be prepared for whatever comes your way. If you have difficult decisions to make, we can also switch up variables to run different scenarios for various future paths.
Come rain or shine, we can help you navigate and prepare for whatever the forecast holds. Book a chat or get in touch if you are ready to make more possible for your small business with business forecasting.