Inflection Advisor’s professional budgeting and forecasting services can help any business establish a plan that will reinforce the trajectory of the organization. Our team specializes in ensuring that your business is budgeting money according to your goals while also allowing forecasting to guide decision making capabilities.
Budgeting and forecasting are very similar, yet they do have some key differences.
Financial forecasting services help businesses estimate the amount of revenue or income that will be achieved in the future. Financial forecasting allows management teams to anticipate results based on previous financial data. These key insights are instrumental in guiding intelligent decision-making.
Unlike budgeting, financial forecasting does not analyze the variance between financial forecasts and actual performance. It is used to determine how companies should allocate their budgets in the future based on research and trend analysis. Forecasting should be completed every few months or whenever major changes occur that potentially alter the trajectory of the business or portfolio.
A long-term forecast can help a company’s management team develop its business plan and make educated adjustments to the overall strategy.
Our team can help any business to outline the spending expectations for a particular period of time. These strategies include key areas such as:
- Revenue and expense estimates
- Expected cash flows
- Expected debt reductions
The budget is often a hypothetical calculation that is compared to the actual hard numbers the business achieves. Budgeting services are essential to a company’s success because they represent the company’s financial position, general cash flow, and the short and long-term goals of the company. It is important to understand that budgeting can sometimes include goals that may not be attainable due to changing market conditions. If a company uses budgeting to make decisions, the budget should be flexible and updated more frequently than one fiscal year so that there is a relationship to the prevailing market.
Why Budgeting And Forecasting For Finances?
Budgeting and forecasting work together to help guide decision-making and create realistic goals for a company to strive towards (based on market performance). For example, both short-term and long-term financial forecasts are used to help create and update a company’s budget each fiscal year, even on a quarterly basis in some instances.
The key is adaptability. By staying on top of your budgeting and financial forecasting, you can adapt to every new challenge that comes your way and adjust your strategy accordingly.