The absence of planning and administration of fund sources is the cause often said for the downfall of several new startups and small-scale businesses. By adopting excellent financial forecasting, companies can further overcome this business danger.
Let’s say for an example if you’re going on a long road trip the first thing which comes to your mind is the maps as you are not aware of the road. In business also Financial Forecasting plays the same role of maps which can help you in taking big decisions in companies favor. A financial forecast is also known as cash flow or forecast or business plan which help to achieve your aim, and you can take your company to where you want to be,says “Jonathon Karelse” the co-founder and a partner at NorthFind Partners.
In Jonathon Karelse’s recent interviews he also said “A financial forecast is only an economic budget or plan for your company. It is an assessment of two primary future financial results for business – your projected earnings and expenses.
Forecasting the financial condition of your company is not easy, particularly if you are beginning a new business and do not have any previous trading experience or history which also means that your business is just a start-up which will surely need Financial and Business Forecasting. And at this point where Jonathon Karelse can assist, he is experienced in making financial forecasts that are both possible yet still challenging. Following are some advantages of business and financial forecasting which Jonathon Karelse have shown in his recent interview.
Advantages of a Financial Forecast:
1) Financial Forecast explains the financial activity of a new and fresh business enterprise. By making a financial forecast, you have a better idea of how to operate financially if specific policies, plans, and events are carried out.
2) By making a financial forecast, you can also see or measure the exact economic performance of your business compared to the forecast financial plan and make required adjustments when needed in respective department whether it is sales or production.
3) Financial Forecast helps you to manage your business in the correct direction and manage your fund flow which can cut down the unnecessary expenses.
4) Gives a standard against which to measure the future performance of your newly started or existing business.
5) Recognizes possible dangers and fund deficiency to do the business out of financial crisis and to keep the financial condition of the company smoother.