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The power of forecasting

With your input, we can build a financial forecast to help you plan for the future, and we can adjust it to show you different scenarios - all designed to keep you on track or perhaps re-plot where you want to be.

Date
24 June 2022
Author
Steven Case Steven Case
Reading time
Around 3 min
Categories
#forecasting
#Advisory

Ever wanted to see the future?… we can show you.

Finance Box have developed a 5 stage collaborative programme to build a multi-year financial forecast of your business. We work together as we’re the ones with the accounting knowledge and you’re the one with the dreams, goals and ambitions. We don’t use the AI based apps unless it’s a simple “business as usual” forecast you’re looking for. If you’re growing or changing direction a bit, we need to plot in some specifics.

Know where you want to get to but not sure how to get there? Our plan can direct you.

Know where your numbers are but want to see where it leads? We can show you the destination.

Want to know when cash runs out?… of course you do. We can not only show you when, but also help you plan how to avoid it.

Our 5 stages are as follows;

  • Stage 1: Initial draft build using available data. You will provide us the KPIs that drive your top line (sales) and justify any assumptions within them. We shall use historical data that we discuss to plot the overheads, salaries and costs of sales.

  • Stage 2: Once our initial build is ready, we shall collaborate with you to agree that our initial assumptions and findings are correct and that you understand where the data we have plotted originates from. This will lead to the initial draft and we leave this with you to review.

  • Stage 3: You review the initial draft and begin to dream, suggest edits, plan different scenarios and ask questions like “what-if…”.

  • Stage 4: We apply any changes to our working model – to ensure that the formulae are still working, and we build in scenarios ready for final presentation.

  • Stage 5: Delivery of forecast. The final product is a fully working excel sheet ready for presentation internally or for external stakeholders.

Once your forecast is complete, it is the perfect tool to match up to your management accounts for regular reporting to ensure you either remain on track of your goals or edit your forecast so you can plan where you’re heading.