Business Financial Projection & Forecasting Services
One of the most important things you can do for your business is to plan out your business financial projections. The formal projections that come as a result however, are often less important than what you learn in the process itself. Strategic planning, if nothing else, allows you to “come up for air” (so to speak) from the daily problems of running your business, take stock of where your company is, and establish a clear plan of action to follow.
Planning regularly also helps your business deal with change, both inside and outside of the company as well. By constantly evaluating your company’s strengths, weaknesses, markets, conditions as well as your competition, you are far more easily able to recognize any problems or opportunities. This way, you can react to new developments, rather than simply plugging along.
But, just what keeps it from only being a math related calculator exercise? Here are a few good reasons to project your business financials:
- #1 This financial strategy turns your company’s goals into very specific targets. This is because it clearly defines what a successful outcome will look like for you. This strategy is not only just a prediction; it indicates a commitment to making the targeted results happen as well as establishing milestones to gauge your progress.
- #2 This strategy will provide you with a very vital feedback-and-control tool. Variances from your early projections will provide early warnings of problems to possibly come. And when these variances occur, this strategy can provide a framework for determining both the financial impact and the effects of various corrective actions as well.
- #3 This strategy can anticipate problems. Sometimes rapid growth can create a cash shortage due to investment in receivables along with inventory. The business financial forecast would show this. If next year’s projections depend on certain milestones this year, the assumptions should spell this out.
You will need to develop several different kinds of projections and budgets depending on your company’s current situation, scenario and objectives. All projections should be broken out by months for at least one year. If you choose to include additional years, they generally do not need to be any more detailed than by quarters for another year and then annually after that.
These projections should include an income statement in addition to a balance sheet. You see, expenses can be summarized by department or major expense category; you can hold line-item detail for your budget. Cash flow needs should be clearly identified as such. You might want to consider adding a separate statement of all cash flows. If your financial statements usually report financial rations or expenses as a percentage of your sales, calculate and report these as part of your business projections as well.
Want to be able to project how much you’re going to make next year or the year after that based on the rate that you’re going? We can help you! At TITAN Financial Pros, we offer several different business forecasting and budgeting services. We work with business owners to get an exact picture of their current business. This helps us give much more accurate financial projections as well as show them what direction their business is going and how much they are expected to grow. Call us today and find out more details on how we can help you grow your business.
These are just a few facts about financial coaches and financial coaching services. Hopefully you found these helpful. If you would like to learn even more about how you can streamline the efficiency of your business finances, then you are more than welcome to contact us and we will take a look at your unique situation and offer some sensible solutions that would work best for you!
“TITAN Financial Pros provide an informational service only and are not responsible for any investments made applying this information. The results described are not distinctive and are not guarantees of future income. Any assumption contains risk and is 100% the responsibility of the individual to assess the risks/rewards involved. We bear no liability assumed or implied for your application of the information shared from this content. This information is for educational and entertainment purposes only.”
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