Clients often require a forecast or projection, for starting a new business, expanding existing operations or just following a consistent strategic plan.
A forecast presents a prospective financial statement, based on assumptions that are believed to be the most likely to occur. A projection is often based on a “what-if” scenario, but is not necessarily indicative of what is most likely to occur.
Events are often predictable, and we encourage clients to maintain “rolling” forecasts, to assist them to prepare for the inevitable by taking timeous action. An example is to arrange a flexible overdraft facility to accommodate seasonal income fluctuations.