Many business owners are used to looking backward at their finances - reviewing past sales, expenses, and profit. While that’s important, it’s just one part of the picture. Financial forecasting shifts the focus forward, helping you understand what’s likely to happen next, and what steps to take now to prepare for it.
If you’ve ever found yourself wondering, can I afford to hire someone? What happens if sales slow down? Do I have enough cash for tax time? - then forecasting is a valuable tool to consider.
What Is Financial Forecasting?
Financial forecasting is the process of estimating future income, expenses, and cash flow based on your current business performance and trends. It gives you a forward-looking view of your finances so you can plan ahead, rather than simply react to what’s already happened.
Forecasting can be tailored to your needs from a simple cash flow projection to a more detailed forecast covering revenue, costs, and profit across multiple months or scenarios.
Why Financial Forecasting Is Worth Doing
Here are some of the key benefits clients experience when they begin forecasting regularly:
Make Informed Decisions
Forecasting allows you to weigh the financial impact of big decisions - like hiring, expanding, or launching a new product - before you commit.
Manage Cash Flow More Effectively
Seeing potential shortfalls ahead of time means you can take early action to avoid cash crunches, rather than scrambling to fix a problem later.
Set Clear, Realistic Goals
Forecasts help you link your business goals to actual numbers, so you know what needs to happen financially to support your plans.
Reduce Uncertainty
With a clearer view of the road ahead, many clients feel more in control and less stressed about their finances.
What the Process Looks Like
When we work with clients on forecasting, we typically:
- Review recent financial data and identify patterns
- Develop realistic income and expense projections
- Explore different scenarios (best case, worst case, expected case)
- Create a clear forecast that’s easy to understand and update over time
- Check in regularly to adjust the forecast as your business evolves
How We Can Support You
We offer tailored forecasting support to help you:
- Understand your financial position
- Make confident decisions based on data
- Plan ahead with greater certainty
- Stay on track with regular updates and reviews
Whether you’re planning for growth, managing a slowdown, or just want to get more proactive with your finances, we’re here to guide you through the process.
We typically work with businesses that have moved past the start-up stage and are starting to feel the weight of financial decisions – but don’t need (or want) a full-time CFO just yet.
Ready to Start Planning Ahead?
If you'd like help creating a clear, practical financial forecast for your business, we’d love to support you. Get in touch with us to learn more about how we can help.