The Rolling Quarterly Forecast

Business Budgets
Business Budgets

Young busy entrepreneurs that are spending a lot of time in running their businesses often don’t have the time to commit to detailed business budgets.  Savvy Numbers has packages to build a model that will help predict the results of their business.

It is important for the business budgets to link in and reflect the vision of the company in the long term and the short-term .Business budgets should reflect the business’ strategic plans for the corresponding periods. Rather than building business budgets / forecast models at the beginning of the financial period and leaving this as the final and only budget for the period, the rolling quarterly forecast will be used. This means that a re-forecast will be done quarterly to allow the business to cater for any unexpected changes in results relative to the initial budget process and will permit the business to make more informed decisions later in the financial period based on more accurate results / forecasts. Re-forecasting quarterly will ensure that there is less time spent on the business budgets each period. Using historical trends and expected future changes to the business model the forecasting models will be tailored to the business and closely tied to the format of the existing financial reporting in order to ensure ease of analysis on a regular basis.

The ideal forecasting model will be six quarterly periods in advance.

– Income statement forecast per reporting period (weekly / monthly / quarterly)
– Balance sheet estimate per period based on existing ratios
– Cashflow forecasts based on income statement / balance sheet and expected changes.
– What-if analysis – if changes are made to certain aspects of the business, what is the impact?

 Contact us for more information how we can help you set your budgets.