Why financial forecasting is important for your SME.
We’d guess that 95% of businesses run just fine with little to no financial planning but that’s similar to running a car to empty and driving on air for a few days. There may be a time you’re unlucky.
Forecasting isn’t about just debtors and creditors, it’s more about the time period after all of these are settled.
SMEs are the life blood of our country and operating in a way where we have a view of the future is necessary. Understanding that while your competition may be cutting costs, you can afford to invest in marketing, staff or equipment. This gives you the competitive advantage you need to succeed.
How can an FC help you in the forecasting process?
Bringing years of experience across many sectors, business structures and revenue models brings knowledge and security. Most of the time businesses don’t hit the wall unexpectedly unless a bad decision has been made, but we like to guarantee security.
One of Control Room Finance’s FC’s key areas is understanding your cash cycle. Knowing the timing difference between cash in and out is vital in understanding when you can invest and how to plan if things are expected to be tight.
Forecasting is needed for everyone, but not all the time. Each business has different requirements at different times but if you have any doubts about what the future looks drop us a message.