Forecasting & budgeting in the post Covid-19 period

Forecasting & budgeting in the post Covid-19 period

For many, the impact of COVID-19 has led to a dramatic fall in income. Businesses of all sizes have been in survival mode, from finding new ways of selling, to accessing government grants and applying for loans with many having to diversify into new markets and products.

We’re working with clients to assist with forecasting, helping them plan for costs in the future and ensure the best decisions can be made.

Using forecasts, you can build up a picture of the future and how changing revenues and costs impact on the overall results. For example, what happens if you lose your largest customer? How does this affect profits and cash flow? What happens to cash flow when you pay your invoices later or earlier?

Advantages of business forecasting include:

  • Effective budgeting for regular payments and larger payments such as corporation tax, VAT and asset purchases
  • Being aware of the cash flow position
  • Making better informed decisions
  • Understanding the surplus cash position

Says Anna Madden, partner at Curo Chartered Accountants “The months and likely years ahead will see many businesses controlling costs and budgets more tightly as they struggle for survival. With uncertainty likely to continue, forecasting models should show maximum flexibility to take account of changes to key areas in the business and help the owners plan for those eventualities as far as possible. With the possibility of a second wave of the virus, effective forecasting should be done now to understand what is needed.

As an entrepreneurial business, we can guide and advise you on what your priorities should be in the months ahead and help your business become more robust as it faces inevitable challenges. We can also help you identify opportunities and ensure profits are optimised.”

Please contact Anna to discuss how we can get your business get ‘post-pandemic fit’ and prepared for the new normal. Call Anna on 01527 558539.

Forecasting

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