Whether for start-up businesses or established businesses, Savvy Numbers will provide the opportunity for those businesses to build a model that will help predict the results of their business. It is important for the forecasting models to link in and reflect the vision of the company in the long term and the short-term budget should reflect the business’ strategic plans for the corresponding periods.
Rather than building a budget / forecast model 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 budgeting process 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.
– 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?