How often should a business forecast its financial future?
How often should business forecasts be done?
Many business owners are unsure how often they should forecast their financial future. The answer is that it depends on the needs of your business. Business forecasting often will make you more aware of potential risks and opportunities, as well as help you stay ahead of the game when it comes to budgeting for them. It also allows you to adjust your marketing strategy accordingly, which can be a lifesaver in slow periods or growing markets!
Regular business forecasting gets you closer to your figures
Business forecasting often how you make it effective. The market will peak and trough, new competitors will appear, customers will drift away and staff will turn over – these situations are, unfortunately, unavoidable. If you want to be confident and on top of where you’re heading, we’d advise you do it at least weekly. Using real-time software will make this task a whole lot quicker and more efficient.
Business forecasting will expand your thinking and give you a better understanding of your company. Keeping close tabs on your financial positioning can translate your goals into specific targets, and make you take a step back and see the bigger picture. Your historical data is useful, but the more regularly you update your assumptions the more relevant your business forecasting data is. We get this can take up a lot of time, but that s where personal finance software like futrli comes into play.
Save time later and do it now using a personal finance software
Business owners working long hours might simply not have the time to do any financial planning. You’ve now got two options: put it off for even longer, or make decisions that are potentially based on errors. Not only will both end in more work overall, your plan is only as truthful as the numbers in it so get it done as soon as possible.
Your budget will help you determine your forecast. Your budget is more of a static point A to point B guide, while business forecasting lets you navigate your path in real-time. Your business is changing direction and audience insight constantly so re-forecasting often is essential. This can be daily, weekly or monthly – whatever your business demands.
Personal Finance software options with Futrli
Pulling data from the cloud every day, your personal finance software, Futrli, automatically pulls in your figures from Xero, QuickBooks Online or MYOB. It can then create rolling forecasts. You’ll be able to keep track of your personal finance and your business in real-time. Updating the finance software often is necessary to make better decisions based on facts.
If you’re struggling with how to begin, have a look at the Futrli personal finance software how-to guides. Things to bear in mind with business forecasting include the changes you’d like to see in your business, changes to the market, and your objectives and goals – not only for the year but longer term.