Why business advisors need to focus on forecasting
Cashflow forecasting allows you to effortlessly change the focus of client conversations from the past to the present and future. Every business needs a budget and a forecast and monitoring KPIs alongside this information will give you the best window into the business’ financial health.
Get paid for your knowledge
Leading with your knowledge gives clients a lot of valuable information. When you’re helping a client to look backwards, you are very limited in the relationship you can foster. So, ask about their goals for the future and see what advice you can give.
Pair this with a simple forecast, which looks at the performance over the last 12 months. In Futrli, creating a forecast to visualise the last 12 months takes less than a minute. This gives you a credible starting point to guide your conversation.
Increase accuracy with non-financial data
Non-financial data is a crucial aspect of any business and it really paints a picture of prosperity when measured against an operational forecast.
CFOs making good use of their non-financial data are more than 1.7 times more likely to forecast earnings within plus or minus 5%. This level of accuracy has helped business owners across the globe get a handle on the health of their companies. Those surveyed were also 2.5 times more likely to successfully respond to market change, which is vital.
Increase your firm’s agility
Our partners tell us that being more agile as a business is a top priority which is getting their attention. The ability to be flexible and change with the ever-evolving tech sector will give you an edge over your competitors.
Agility married up with the right software gives you the best chance of success. Forecasting your clients’ figures will allow them to see when their cash peaks and troughs, meaning they’ll be able to reinvest cash at opportune times. Joining this up with ‘what-if’ scenario planning is going to put them in a position to ride the waves of business with multiple options to move forward confidently.
Specialise in making the uncertain, certain
Make forecasting your unique selling point. Of the business owners that approach us directly, 97% come to us for forecasting and 80% are doing this themselves.
So many firms will offer help with audit, tax and compliance but what about improving gross profit% or support controlling the cost of sales? Budgets, forecasts, KPIs and monitored progress allow you to make a difference today.