All forecasts are not created equal. That’s why you need prediction software. Yes, you really do.
Why Predict is the perfect software for small business forecasting and financial management
Keeping on top of your business finances can be hard for (small) business owners. Maintaining oversight over business assets, business expenses, tax obligations, business-related expenses, and other past and present data can be challenging for (small) businesses. Traditional cash flow forecasting can have a limited scope of how it can inform business planning and a strategy.
Why business owners and (small) businesses should use prediction software for their financial forecasting?
So what’s the problem that prediction software solves? Having to rely on your gut or out of date, and bitty information to make decisions about every aspect of your business’s future. Or using cash flow software and only getting some of the information you need.
It’s wrapped up in this “that’s just how business is” rule. Well, rules are there to be broken. Next-gen-zen is how you’ll feel with Predict. You’ll make choices with accurate and up to the minute predicted information at hand, not decisions under duress or with a high dosage of alka seltzer. Predict, with its 3-way forecasting, takes into your account profit and loss and cash flow forecast.
Let’s level with each other. Traditional forecasting is hard. So, finance teams, CFOs, and (small) business accountants do it in the main and it takes time. Predict isn’t traditional forecasting. It isn’t hard, so you as a business owner can do it (or actually Predict will do it for you). And it is going to transform how you work.
How and why Predict can help small businesses
Let’s get to the facts. It’s not cash flow only forecasting, it’s nothing like manual spreadsheet forecasting, and it’s not impenetrable software created for finance professionals to produce different scenarios for bigger businesses (like Futrli Advisor). It may just be perfect for your own business.
Cash flow only software reports everything gross with VAT, and only any cash movements your business may make, so you can never track the real performance of sales or profitability. They can also never create the full profit and loss statement, balance sheet, and cash flow statement that you will need if you ever need to apply for funding. Finally, they don't accurately predict the cash impact of each upcoming VAT / GST return.
Some cash flow-only software looks at due dates of invoices and bills to predict cash flow, but they don’t predict when they will actually be paid - that can be a completely different story and be the difference between having cash in the bank and not.
Some give limited options in testing out your potential choices before you make them with their manual methods - what if you want to know what the impact of taking on new staff, launching a new service, or opening a new office is?
Some don’t bring in historical actual data at all or in a sensible way - cash and opening balances are always wrong and VAT will never be calculated for you.
Some use AI, but with no explanation of where any projections come from - for instance, projecting VAT (GST) forward based upon historical data rather than as a calculation of actual and predicted activity. If you’re a seasonal business that is going to give you wildly inaccurate future cash in the bank.
Any cash flow only forecasts are always incomplete as it just looks at cash in and out and sometimes it will give you a dangerously inaccurate view.
Spreadsheets are flexible of course and if you're a trained CFO, CPA, or financial analyst you will likely still rely on them as they are how you have learned and deployed your craft. Pain comes with version control, updating actuals, sharing with your business partner, team, or advisors, explaining drivers, formula errors (which are danger personified). All of this means spreadsheet forecasts are a no for 95% of business owners.
Predict is for your unique business and gives you the whole future picture of it. The way that it effortlessly pulls every transaction apart, understands the differences between every account type, calculates VAT accurately, and combines this logic with smart algorithms to predict the daily activity and cash impact, means you basically have a team of virtual CFOs working for you every moment, of every day.