Financial forecasting allows you to better prepare your business for the future. It is also a process that is essential for businesses that are seeking loans, investments or outside capital, and is a critical exercise when you are deciding whether, or how, to grow your business. Financial forecasts, sometimes in the form of pro forma financial statements, is a key component of a well thought out business plan.
Financial forecasts are a means for a business to express its goals and priorities, and to ensure that the goals and priorities are consistent with the available resources and with the company’s business plan. They also assist the business owner in identifying cash and asset requirements and needs for outside financing.
A few of the financial forecasting services offered by Bookkeeps include:
- Preparation of pro forma financial statements, using various assumptions and variables;
- Calculation of the various ratios and formulas that are often used by lenders or investors in analyzing a business, and assisting you in understanding and improving each of those ratios and formulas;
- Assisting in both short term and long term business and strategic planning.