Short and medium term forecasting

Short and medium term forecasts are one of the most important ways for management and stakeholders to understand and control their business.

 

A regularly updated short term cash flow forecast (usually 13 weeks) should capture a full quarters projected cash requirement and utilisation.  

 

The business can identify pinch points well in advance and manage its working capital accordingly.  A well constructed cash flow can prevent unplanned overdraft excesses and demonstrate to all stakeholders that management are in control of their business.

 

Medium term forecasts underpin the strategic plan and translate proposed actions into measurable and quantifiable outcomes.  The forecast will allow management to measure itself against clear financial targets and identify the medium term funding requirements of the business.  

 

A good forecast will allow for flexibility and can be sensitised to model a number of outcomes depending on fluctuations in assumptions.

 

At Preston Advisory, we have the financial skill to assist management in the preparation of both short and medium term forecasts - from a simple stand alone set of numbers through to complex integrated models across a range of different business processes and financial outcomes.  

 

We pride ourselves on creating financial models that can be used to monitor and control, long after we have ceased to be engaged.