Financial Forecasts and Projections

Whilst no one can predict the future, financial and cash forecasts can help you to make informed decisions about your future operations, based on historical trends. For example, your business may have seasonal trends whereby sales are higher during certain months of the year and therefore you would look to avoid large outlays of cash during months which aren’t as cash generative.

Through effective forecasting you can not only determine future cashflows, but you can also use this data to help build your future business plan and manage the expectations of your senior management team. Well prepared forecasts can also help you to understand key business trends, such as what happens to your bottom line if your top line increases by 5%. For all businesses, ‘cash is king’, which is why it’s so important to ensure you have sufficient resources to meet your future financial obligations as they fall due.

In addition to forecasting, our team at Arnold Hill & Co can also assist you with preparing future financial projections. During this process we will review your current incomings and outgoings and subsequently apply several 'what if' scenarios based on your possible future plans for the business. This may cover a variety of different scenarios, aiding you in your future decision making.

Both forecasts and projections can be key if your business is looking to attract external investment but may also be a requirement of lenders to provide on a routine basis. Both documents are ‘living’ whereby the information is kept up to date and should reflect both actual and forecasted results.