What is financial forecasting?
Financial forecasts are an estimate of the future financial performance of a company based on historical accounting data, sales trends, external market and economic factors. These forecasts usually include balance sheets, profit and loss statements, cash flow forecasts and anticipated burn rates. Projections are created over the next year or two and provide a basis of comparison to actual figures in the future to assess how a company is performing against its expected performance.
Our financial forecasting approach:
1 – Analyse historic data.
The first step in the financial forecasting process is to analyse data from previous years trading to build a picture of a company’s performance in the market place. Sirius B.I. has extensive knowledge of industry practices, accounting and financial reporting. Using this knowledge base allows a full picture of a company’s financial performance to be formulated and the factors that influence it the most to be identified.
2 – Project financial performance.
Working with the company over the coming year Sirius B.I. use industry experience and knowledge of financial trends to create a projection of a company’s expected financial success. Looking at the relevant market place and external influencing factors an accurate view of the company’s market standing is established.
3 – Comparing projections with actual performance.
The financial forecast enables Sirius B.I. to work with the company in order to help in the realisation of financial goals and targets. Comparing the projection with the actual path of the company’s financial progress allows under performance to be analysed and assessed. If a company is under performing Sirius B.I. report on the reasons why and suggest actions to address them.
Why use Sirius B.I?
Qualified in accountancy and business analysis, with industry experience in human resources and Lean Six Sigma, Sirius B.I’s skill set combines perfectly to allow a holistic approach to financial forecasting. Expertise in multiple financial systems, people management and system management enable Sirius B.I. to give a fresh perspective, backed up by practical experience and a thorough understanding of the relevant business practices. This skill set enable Sirius B.I. to analyse historic financial data, project expected performance and compare that projection with future sales figures.
To find out more about the financial forecasting service take a look at the “case studies” section, or contact Sirius B.I. for more information.