Posts Tagged ‘Projections’
Bookkeeping Business Tips for Developing Reliable Financial Projections
Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast. But then, the information changes, now it’s raining, and you’re caught without your umbrella!
Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either. It is a combination of:
knowing your business;
understanding your marketplace;
setting goals; and
using common sense.
As a business coach, I know that every small business needs to make reliable financial projections at one time or another. Forecasting is critical during the following stages of a company’s life span:
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