top of page
  • Ron Rechan

Forecasting for Success: Unlocking the Power of Financial Projections By Ron Rechan.

Updated: Jun 4, 2023

As the CEO of your company, you may be wondering how financial projections can help your business. Here are some reasons why financial forecasting is mission-critical and how it can positively impact your business:


  1. Financial forecasting is a vital part of business planning that uses past financial performance and current conditions or trends to predict future company performance.

  2. Financial forecasting arms executives with specific and accurate predictions they can use to make plans for the company, barring unforeseen circumstances.

  3. Financial forecasting helps businesses set and meet goals.

  4. Strong financial forecasting practices tend to lead to better financial outcomes, more stable cash flow, and better access to credit and investment that can help your business grow.

  5. Financial forecasting encourages employees to think about the future and how improvement in the execution of their daily tasks can positively impact results.

  6. Financial forecasting helps people throughout the organization focus on a common goal.


Financial forecasting is not a one-size-fits-all practice. As a financial consultant and advisor, I view forecasting as a collection of techniques and methods that executives choose from depending on the data they’re using and the purpose of the output. Among the best financial practices you can embody in your business is to make financial forecasting an evergreen activity.


In conclusion, financial forecasting can be a great tool for businesses to predict future financial situations. While it's never a promise, it's simply part of the decision-making process, specifically informing strategic decisions. With access to data and a well-reasoned future plan, stakeholders can make better decisions about their strategies and investments. By developing strong financial forecasting practices, you can set your business up for success and growth. If you have any questions about this topic, please get in touch with me, Ron Rechan, at www.ronrechan.com.

14 views0 comments

Related Posts

See All

Comments


bottom of page