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The Business Advisory Blog

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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

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Advantages of Forecasting

Written by Vanessa Williams on March 5th, 2018.      0 comments

Financial forecasts assist in managing your finances.

They are future predictions of your business finances, as compared to statements, which provide details of actual results of progress.

The following are five ways forecasting can help your business:

1. Focus on the Future

set goals-464By forecasting on a regular basis, it forces you to continually think about your future and where your business is headed. This will allow you to foresee changing market trends and stay ahead of your competition.

2. Customer Satisfaction

Keep your customers satisfied by providing them with the product they want, when they want it. The advantage of forecasting in business will help predict product demand so that enough product (or staffing) is available to fill customer orders particularly if demand is seasonal.

3. Credit

If you expect to apply for a loan or line of credit, your financial institution will likely ask you to provide them with forecasting reports with your submission.

4. Cash Flow

Forecasting can give you the intelligence to anticipate a downturn in sales and plan for it. Likewise, it can alert you to periods when you can expect an increase in sales and you can organise additional staffing ahead of time.

5. Progress Towards Goals

If you can’t measure it, you can’t improve it. Setting goals alongside your business forecast allows you to track your progress and plan your operations that are aligned to what you want to achieve.

The Alliotts team in Auckland is the best place to start to undertake a forecast for your business. Call us today on 09 520 9200.


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