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Inspirational Quotes

Financial Forecasting and Planning

Mon, 29 July 2002

Financial forecasts are, quite simply, your forecast of how your business will perform financially over, say, the year ahead.
Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank. But they also provide you with the means to monitor performance on, say, a monthly basis and thereby exercise effective financial control - arguably the second most important management function in running a business.
 

Objectives

The aim of this, and the subsequent articles related to financial information, is to help you to prepare financial forecasts. It will enable you to:
  • understand costing and pricing;
  • use break-even analysis as a way of setting sales targets;
  • understand financial forecasting; and,
  • assess working capital requirements.
The information in this, and the subsequent articles related to financial information, is intended as a starting point only. We would recommend that you contact your business adviser if you are in any doubt about the topics here.

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