Australian medium-sized companies often find themselves at a crossroads when it comes to accessing the capital needed for expansion. The Australian Business Growth Fund (ABGF)
Financial Forecasting
COLLABOR8 with us for all your financial forecasting and budgeting needs.
Is There A Pulse?
Collabor8
We all know that cash flow is the lifeblood of any business. Even profitable companies can fail due to poor budgeting and financial forecasting.
At ALLEVI8HQ, we encourage businesses to be proactive in managing their financial forecasts, rather than assuming you only need them if the bank requests it. We recommend that every business undertakes an annual budget and forecast to aid their planning and decision-making.
When you have a clear understanding of the expected inflow and outflow of funds in your business, you can confidently plan and execute growth and improvement strategies to achieve positive changes in your business.
When you COLLABOR8 with us, we’ll ensure that your business budget and forecasts are tailored to your specific needs and objectives. With an understanding of your unique business goals, resources and constraints we can put together the financial data you need to plan and manage your business effectively.
With ALLEVI8HQ you can achieve greater financial stability, make informed business decisions, and drive long-term growth and profitability.
Financial Forecasting Services
At ALLEVI8HQ, we develop realistic financial reports that align with your strategic goals. We can assist you with budgets, forecasts, financial models and a 3-way cashflow forecast as well as expert business advice to help you interpret the data and make good decisions.
Business Budget
Plan and manage better with a business budget that clearly illustrates expected revenue, overheads and profitability.
Business Forecasting
By analyzing historical data, marketing research and scenario planning we identify potential financial risks and opportunities.
Forecasting Models
Forecasting models like trend analysis, regression analysis, and time series analysis can generate accurate financial projections.
3 Way Forecast
A 3 way cash flow forecast provides a comprehensive view of your cash position. It analyzes your operating, investing and financing cash flow.
Speak To A Forecasting Expert
Allevi8HQ is run by Jag Olak, a highly
experienced CFO in Brisbane with more than 20 years of experience.
He is a qualified Chartered Accountant, an executive MBA and has a certification in advanced restructuring and turnarounds from the Australian Restructuring, Insolvency and Turnaround Association.
Reach out and let us know how Jag and can help you.
Send through the form or shoot us an email.
Benefits Of Working With ALLEVI8HQ
Financial forecasting can provide significant benefits to your business, such as:
- Viability: A business budget brings financial clarity to the plans you have and reveals whether they are viable or not.
- Expertise: We're worked with many different business and financial models and can help put together a forecast that makes sense for your situation.
- Measure progress: With reliable financial forecasts you have a base against which to measure actual business activity and decisions.
- Identify potential risks: Our team can prepare a financial forecast that will help help you identify any potential risks or challenges in your plans.
- Improve cash flow: A strong financial forecast will help you to manage cash flow better.
Business Budget Management
A business budget is a financial forecast that outlines the expected revenues and expenses of a business over a specified period, typically one year. It is a tool used to set financial goals, manage resources, and monitor financial performance.
Our business budgets include a detailed projection of expected income, expenses, and the cash flow of your business over the budget period. It will help you to prioritise your spending, allocate resources more effectively, and ensure that you have enough cash on hand to meet your financial obligations.
With a business budget in place, you can monitor your financial performance, anticipate any challenges or opportunities, and make adjustments as needed to meet your financial goals.
Our Business Forecasting Process
At ALLEVI8HQ we develop your business forecast using the information from your accounting software. We will send you a draft of the forecast to review, along with a set of questions to ensure that our assumptions are correct and to identify any changes that may impact the forecast in the next 12 months.
After we receive your feedback, we will meet with you to review the draft business forecast in detail. During this meeting, we will discuss any seasonal fluctuations, material changes to last year’s cash flow, the implications of staffing changes, significant one-off items, tax payments, and timing, and capital expenditure. Based on this discussion, we will finalise your business forecasting in your accounting software.
To help you track your progress, we recommend that you create actual vs. forecast reports each month. This will enable you to identify areas that may require improvement and make any necessary adjustments.
Financial Forecasting Models
Our financial forecasting models are an essential tool for businesses looking to achieve financial stability and long-term success. These models can help you predict future financial performance. You can make informed decisions about your finances, anticipate potential risks and opportunities, and plan for the future with greater confidence.
Types of Financial Models
There are several different types of financial forecasting models, including trend analysis, regression analysis, and time series analysis. We will help you choose the model that best suits your needs and use it to generate accurate financial projections.
3 Way Cash Flow Forecast
A 3-way cash flow forecast is an essential tool for businesses to manage their finances effectively, anticipate potential cash shortfalls, and make informed decisions about investments and financing. It covers:
- Operating cash flow: Cash inflows and outflows that result from the day-to-day operations of the business.
- Investing cash flow: Cash inflows and outflows resulting from the purchase and sale of assets or investments in other businesses.
- Financing cash flow: Cash inflows and outflows resulting from the borrowing and repayment of debt, issuance of equity, and payment of dividends.
FAQs
Answers to some of the common questions about financial forecasting. If you’re still sitting with questions, get in touch with us.
Creating a budget plan for a business involves several key steps. Here is a general process that can be followed:
- Gather financial information: Start by gathering information on your past financial performance, including income statements, balance sheets, and cash flow statements. This will help you to identify patterns and trends in your revenues and expenses.
- Estimate revenue: Estimate your expected revenue for the upcoming year. This can be based on past performance, industry trends, and your sales projections.
- List your expenses: Identify all of your business expenses, including fixed costs (e.g., rent, insurance) and variable costs (e.g., inventory, marketing, and payroll). Be sure to include any expected changes in expenses due to new initiatives or planned changes in operations.
- Categorise expenses: Categorise expenses into operating expenses (such as rent, utilities, and salaries) and non-operating expenses (such as investments, loans, and taxes).
- Prioritise expenses: Prioritise your expenses by putting them in order of importance. This will help you to identify areas where you can make cuts if necessary.
- Develop a profit and loss statement: Create a projected profit and loss statement based on your revenue estimates and expenses.
- Create a cash flow forecast: Estimate the timing and amount of cash inflows and outflows. This will help you to understand when you will need cash and how much you will need to have on hand to meet your financial obligations.
- Set financial goals: Set realistic financial goals that align with your business objectives. This will help you to measure your progress and ensure that you are on track to achieve your goals.
- Review and refine: Review your budget regularly to monitor your financial performance and identify any changes in revenue or expenses. Refine your budget as necessary to ensure that it remains aligned with your business goals.
Creating a business forecast involves several key steps. Here is a general process that can be followed:
- Gather financial and industry data: Start by gathering financial and industry data that can inform your forecast. This may include historical financial data, industry benchmarks, economic indicators, and market trends.
- Identify assumptions: Identify the key assumptions that will inform your forecast, such as expected changes in market conditions, customer demand, and pricing. These assumptions should be based on current and historical data, as well as your knowledge of your business and industry.
- Choose a forecasting method: Choose a forecasting method that is appropriate for your business and the assumptions you have identified. Common forecasting methods include trend analysis, regression analysis, and time series analysis.
- Develop a financial model: Develop a financial model that incorporates your assumptions and chosen forecasting method. This model should provide a detailed projection of your financial performance over the forecast period, typically one year.
- Review and refine: Review your forecast regularly to ensure that it remains accurate and relevant. Refine your forecast as necessary to ensure that it reflects changes in market conditions, emerging trends, or changes in your business operations.
- Use the forecast to inform decision-making: Use the forecast to inform decision-making about resource allocation, investment opportunities, and overall financial strategy. The forecast should be an integral part of your financial planning and should guide your decision-making on a regular basis.
Forecasting is an essential tool for businesses looking to achieve long-term financial stability and growth. By providing a clear picture of the future, forecasting enables businesses to plan, allocate resources, and make informed decisions that are aligned with their overall business objectives.
Business & Financial Insights
Latest posts from our business advisors
As a business owner, you have big dreams for your company and a clear vision for its future. But as much as you’d like to,
Medium-sized businesses in Brisbane and across Australia are constantly seeking innovative ways to expand their operations, increase profitability, and stay ahead of the curve. As
