As we get closer to the close of this year, this is an important time for businesses for a number of reasons. They will be looking at the goals that they accomplished, getting ready for tax season, and looking at the ways that they fell short this year. It is a unique time when businesses can also start to make plans for the upcoming year as they are having this moment of introspection. The best way to do this is with strategic forecasting. Mark Dicus & Company is here to share some tips to help businesses with strategic forecasting and talk about why it is so important.
Why Strategic Forecasting is So Important
When you hear someone refer to strategic forecasting in business, they are referring to the process in which a business will use historical data, market trends, and predictive analytics to project and even improve their financial performance. This helps businesses to make informed decisions that will help them achieve the growth they’re shooting for. Here are some important reasons why it’s important:
– Financial Viability: Being able to anticipate the financial viability of your company can help you make important decisions whether it is to launch a new product or expand your business in other ways.
– Cash Flow Management: Many businesses experience a lot of cash flow issues even when they have increased sales throughout the year. When you are using strategic forecasting, it can help you identify potential cash flow issues before they become larger and more problematic.
– Scenario Planning: There are a million “what if” scenarios that could play out for your business. Strategic forecasting can help you prepare for those scenarios so that they aren’t as disruptive should they happen.
– Break Even Points: You need to have a clear understanding of the bare minimum you need to keep the lights on. Strategic forecasting can help you identify what these break even points are so you know when you’re operating at a loss or profit.
– Dynamic Adaptability: When you are in the business world, it is important that you learn how to adapt to a business landscape that is ever-changing. Watching market shifts, chases to your business model and other adaptations are vital in finding success.
– Attracting Funding: You need strategic forecasting to help you attract investors. You may also need secure loans to help you do business. Lenders want to see that you are thoughtful in planning and forecasting for your business before they are going to give you money.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you are looking for business consulting, you can turn to Mark Dicus & Company to give you what you’re looking for. We will help you with your strategic forecasting so that you can reach your financial goals. We will also assist you in your accounting and tax preparation needs, should you have them. Call us today!