We have been offering financial forecast in Peterborough to our clients since we first began. Many lower middle market and smaller businesses don’t have financial forecasts for their business. They are therefore missing a really good opportunity to determine what really drives results for their business.
Meanwhile, the more valuable companies across all industries are earning above average profits and growing as fast as others in the market (or faster). These are the ones that have financial forecasts for their business. This means they can predict their results each year and month. This is based on previous years and reasonable market condition assumptions.
A financial forecast in Peterborough is like a prediction of future results for the business. It means you don’t have to guess about business offerings. It also means you’ll be able to make informed decisions for the best outcome for your business.
Here at Direct Peak we complete financial forecasts in Peterborough on an annual basis for our clients. This means they can see the forecasted results for the upcoming years. We then review this financial forecast with the client half way through the year.
Financial forecast in Peterborough are really useful because it enables business owners to clearly see which products or services generate big revenues, but perhaps have poor gross margins. By understanding which areas of the business bring in the most profit you can find ways to make your business more profitable. We have worked with many clients that have adjusted their business strategies. When they have embraced the parts of the business that have much higher gross margins.
Looking for business accountancy services
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.
Financial forecasting offers several benefits to SME businesses. Here are some of the key advantages:
- Planning and Decision Making: A financial forecast provides valuable insights into the future financial performance of the business. It helps SME owners and managers make informed decisions by anticipating potential challenges and opportunities. By having a clear understanding of the financial implications of different strategies, the business can allocate resources effectively and set realistic goals.
- Budgeting and Resource Allocation: A financial forecast enables SMEs to create a comprehensive budget by projecting expected revenues, expenses, and cash flows. This allows businesses to allocate resources efficiently, ensuring that funds are allocated to the areas that require them the most. By identifying potential cash flow gaps or surpluses, SMEs can take proactive measures to manage their finances effectively.
- Identifying Financing Needs: Forecasting helps SMEs identify their financing requirements. By estimating future cash flows, businesses can determine if they need additional funding to support their growth plans, purchase new assets, or cover operating expenses during periods of low revenue. This allows SMEs to approach lenders or investors with well-prepared financial projections, increasing their chances of obtaining the necessary funds.
- Performance Evaluation: A financial forecast provides a benchmark against which actual financial performance can be measured. By regularly comparing the forecasted figures with the actual results, SMEs can assess their performance, identify any deviations, and take corrective actions if necessary. This helps in maintaining financial discipline and ensuring that the business stays on track towards its goals.
- Stakeholder Communication: Financial forecasts are essential when communicating with stakeholders such as investors, lenders, or potential partners. A well-prepared forecast demonstrates the SME’s financial understanding and commitment to achieving its objectives. It can instill confidence in stakeholders and attract investment or support for the business’s growth plans.
- Risk Management: Financial forecasting allows SMEs to assess potential risks and develop contingency plans. By considering different scenarios and conducting sensitivity analysis, businesses can identify areas of vulnerability and take pre-emptive measures to mitigate risks. This helps in ensuring the sustainability and resilience of the business in the face of uncertainties.
Financial Forecast in Peterborough
Financial forecasting provides SMEs with a structured approach to understanding their financial future. It enhances decision making, facilitates resource allocation, and enables businesses to proactively manage their finances.
By being able to see into the future with a financial forecast in Peterborough you will be able to make a well-informed decisions. For example, to see if you need to hire new staff, the education and experience you’ll need from new employees. Along with what software, tools and support you may need from third parties. This is because your financial forecast will enable you to see where the business is now and where you want the business to be.
You’ll be able to see what parts of your business are not working by looking at your financial forecast. You can quite easily roll on, month after month, thinking all is well. However, it’s the annual financial forecast that will show you how things are going. It gives you a chance to take time out of the business. To review what you are doing right, and what really isn’t working for your business. This financial forecast will also help you find ‘D’ level customers. These are the customers that take all your time, but produce the least profit.
If you’d like to know more about how financial forecasts in Peterborough can help you, then why not call us directly or send an email. We look forward to showing you what you business can achieve.