03/03/2022

Financial Forecasts Provide the Data You Need to Plan Your Year

Create a strategic road map

The ability to go above and beyond when serving customers is key to any business' success. But are you putting the same level of care and attention to the needs of you business? One key way to do this – especially as we start a new year – is by developing a full set of forecasted financials for the upcoming fiscal year.

Forecasted financials, if done properly, provide your organization with relevant data that can be used as a road map to plan for the impact of operations for the upcoming year. Based on planned operations and the resulting impact on cash flows, this information helps organizations understand the negative and positive consequences of anticipated activities, and build a strategy to manage them.

Features of a Practical Financial Forecast
Many businesses base their forecasts and plans off their income statement alone. While revenue and profitability levels are important, the impact of operations on the resulting cash flows is equally important. A full set of forecasted financials should include consideration of the income statement, balance sheet and cash flows. This picture provides a more accurate indication of the financial impact of planned operations for the upcoming year.

Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett (CSH).