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Posted by: Charles P Myrick CPA Posted on: Jul 05 2016 Posted in: small business, outsourcing accounting services

What Small Business Owners Should Know About Financial Forecasting

A proactive approach to small business accounting includes strategies like financial forecasting.The forecasting strategy can take a lot of time and effort, which is why you shouldn’t try to handle it on your own. Instead, it is better to enlist the help of a CPA who can help you fine-tune your business plan and know what to expect in the future. 

What is Financial Forecasting?

When a financial forecast is developed, it shows an estimate for the future economic outcomes of your small business. Internal accounting methods are analyzed, along with sales data and upcoming business activities, to determine the trajectory of income that you can expect in the near future.

This process considers the goals of your company and compares them with the daily priorities of management and employees. By understanding these forecasts, you can determine whether there is internal consistency in your business, helping you to reach higher levels of success in the future.

Benefits of Outsourcing Financial Forecasting

When talking with accounting firms about the services available, it is important that small business owners ask about the ongoing support that is provided and whether forecasting is included. By using tools such as cash flow management and forecasting, you will improve the efficiency and accuracy of your small business accounting systems. For example, you will be able to estimate product demand to make sure that you can fulfill all customer orders in the future.

Additionally, financial management and forecasting helps to improve the profitability of your company and keep you looking forward to the future. You can stay competitive in the market, and learn from past financial mistakes that occurred.

Get Your Planning Back on Track With Our Cashflow Forecasting Worksheet

For cash flow management and financial forecasting services, contact Charles P Myrick, CPA. Recognized as one of Washington DC’s top accounting firms for small businesses, we can help set up the systems that will move your small business to success. (202) 789-8898 8