This week’s downloadable PDF is by Sherry Rahbar, Partner, CFO Edge, LLC.
Budgeting and forecasting are most frequently associated with the profit and loss statement (P&L), but this view can overlook the importance of forecasting cash flow, as well as of including a balance sheet in the projection.
Delegating forecast preparation to the finance department or controller incurs risk: without input from those running the business, missing forecast purpose and key assumptions negatively impact accuracy.
Collaboration among the owner, executive team and forecaster means the forecast will be produced in a context of relevant factors like product or service lifecycle stage, market growth and competitor comparisons.
Reviewed in this week’s full PDF…
…are how forecast objectives inform use of a qualitative, quantitative or casual forecasting model, as well as how effective forecasting drives five benefits.
Forecasting is a front-burner consideration for Los Angeles and Southern California executives who seek financing or want a financial roadmap for their businesses.
A provider of on-demand CFO services can assist in developing a forecasting strategy tailored to each business and aligned with long-term goals.