Menu
   SECURE CLIENT PORTAL
   MACLEAN NEWS & UPDATES
Tax Checklist
2020 - Tax Checklist
To assist in completing your tax return, we have a checklist that will help you with what you need to provide us. Find out more
Virtual Tour
- Virtual Tour
Take a tour and explore our office Find out more

How to use forecasts and scenario-planning

 

For centuries, accounting was all about reviewing historic information - but that only told you about the past, not what was going to happen in the future.

If you're only looking back at past periods and historic numbers, that limits the insights you can achieve into your business.  With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of he business. 

Forecasting changes this.  With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future - and get in control of your business.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management.  By moving to a forward-thinking view of your business journey, you can see further down the road - and that helps to spot the opportunities and avoid the common business pitfalls.

Forecasting adds value by:

  • Highlighting the data patterns - a forecasting tool takes your historic data and projects it forward in time.  This helps you and your advisers to spot the patterns, trends, gaps and opportunities, revealing the true 'story' behind your business accounts.  For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise any negative impact.
  • Giving you a future view of your business - instinctively, business owners will look back at prior periods to assess performance.  There's value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than the rear-view mirror showing you the road you have already travelled.
  • Helping you scenario-plan - with a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning 'What it...?' questions.  Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time.  If option B performs better than option A, that's invaluable information when defining your next strategic move.
  • Making informed, evidence-based decisions - having 'the full picture' of combined historic numbers, forecasts and longer-term projections aides your business decision-making.  Forecasting gives you solid evidence on which to base your strategy, and helps to red flag any threats that are looming on the horizon - giving you the best possible information to keep your executive team informed and on the ball.
  • A deeper relationship with your accountant - forecasting also helps us to get a far more granular view of your business.  This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.

Talk to us about the benefits of forecasting

If you want to get in control of the destiny of your company, come and talk to us.  Forecasting helps you highlight your future threats and opportunities - and create a proactive strategy to improve the performance of your business.

Back to Articles & Guides

5ways
Sign Newsletter
What our clients say...
  • "I've known Ross for many years and his team continues to deliver good, wholesome country service" - Read more
    - Kym Westcott, Paleo Cafe
  • "Maclean Partners are very knowledgeable accountants who are always attentive and keen to learn more about how to improve our business. John and his team offer sound advice about tax and general accounting, as well as helping structure and manage the financial aspects of the business to our advantage". - Read more
    - Tony Pascoe, NQ Foot and Ankle
  • "We've worked so hard over the past 10 years to get the business to where it is and sometimes you can't see the forest from the trees. Thanks to the Maclean Partners and the 90 Day Business Challenge, I found each module so helpful and the self-paced online aspect combined with the face to face coaching and workshops worked really well for us. - Read more
    - Nelly Evans,Powdercoat Select
  • "Nelly (my wife) told me she had signed up for some business training and I told her it was a waste of time and money. I wasn't interested in doing it at all because both our businesses are firing on all cylinders, but to show her support, I went along to the first workshop and I was impressed. Nelly and I have been doing a lot of talking, but we realised that we never had the right mindset to take action. - Read more
    - Glenn Evans, The Fencing Factory
Logo Logo Logo Logo Logo Logo