Financial Forecasting for the Future

financial forecasting

If you want to succeed tomorrow, you must consistently look to tomorrow. Goals cannot be set in a vacuum. Rather, they must be made in context. For this reason, financial forecasting is a key component of your company’s growth strategy.

While goal-setting for the future is vital, even the best-laid plans are irrelevant without having an accurate forecast of the market and other financial indicators.

Financial forecasting is the process of predicting realistic future possibilities, rather than just hoping for them. By predicting future financial performance and data through a complete analysis of past and present data, financial forecasting puts strategic goals in perspective by bringing a business’s history, positioning, and resources into the equation.

Foundations of financial forecasting

Knowing that forecasting is necessary is just the first step. Next, you must understand what to forecast, and what company data to draw from.

While every financial forecast is as unique as the business being analyzed, financial forecasts typically begin with an analysis of past and current financial statements, including:

  • Income (P&L) statements
  • Balance sheets
  • Cash flow statements
  • Working capital

From these metrics, your business can establish a baseline, telling you where your company is likely to be in the future, assuming you continue on your current trajectory. It will inform you of the resources you need, and the management that will be necessary to respond to what the data says.

Benefits and limitations of financial forecasting

Financial forecasting is a powerful business activity that comes with countless benefits. Here are some of the reasons to get your finger on the pulse your company’s projected future performance:

  • Better inventory management and resource planning
  • Ability to identify overlooked areas in the business
  • Spotlight on well-performing products and service offerings
  • Chance to look at sales patterns, whether seasonal or otherwise

With that being said, it’s important to keep in mind that financial forecasting is not a perfect science. At the end of the day, financial leaders and advisors are analysts and strategists, not fortune tellers!

The future is uncertain at the end of the day, and there are many factors that could come into play, from unforeseen market changes to fluctuations in internal resources, and everything in between. However, financial forecasting is still vital to your company’s health, as the forecast provides in-depth, data-driven insights to guide business strategy and direction.

Future focused forecasting

While forecasting for the future and planning accordingly is necessary for businesses great and small, it alone still arguably falls under the ‘management’ category.

Financial forecasting is, and should be, at the very core of future focused accounting. The difference lies in changing your approach from one of a manager, to one of a leader, by using forecasts as conversation openers, not conclusions.

Rather than simply managing your current reality or recovering from a downturn, what if you used your financial forecasting to drive change? In other words, start changing the conversations in the boardroom from ones of ‘where are we going?’ to ones of ‘where COULD we be going?’

By looking at financial forecasting as the jumping off point for developing your growth strategy, the possibilities transform from predictable to endless.

Ready to jumpstart your growth? Reach out today to learn how Blueprint CFO and a fractional CFO can help you take your future from good to great!

Valuation Planning

Blueprint CFO will work with executive leadership to determine shareholder value, and run various models to determine estimated company valuation. Together, we will determine milestone objectives to increase shareholder value and track company performance in relation to these targets. We will review your company’s organic and acquisition growth options to create shareholder value, and emphasize tax planning to optimize shareholder value upon a sale or purchase. We can also focus on Initial Public Offering (IPO) Planning and Readiness.

Analytics & Business Intelligence

We believe that being data-driven is key to profitability. As such, we can help you create meaningful dashboards and scorecards for your business, analyzing performance against key performance indicators and other factors. Our profitability reporting and analysis tools will help drive business decision-making and provide insights into trends, predictions, results, and potential strategic direction moving forward.

Goal Setting & Tracking

Our team can partner with company leadership to establish goals and objectives for the company, for both the short and long term. Additionally, we will help leaders develop meaningful Key Performance Indicators (KPIs) to track and measure results.

Insurance & Tax Planning

Blueprint CFO can work with businesses to review insurance needs and requirements, as well as plan for taxes and R&D credits.

Human Resources

We can assist your HR department with employee benefits planning, and can also perform compensation studies to ensure best practices are implemented across the business.

Accounting & Finance Support

Whether you have an internal team in place or need more hands-on assistance, Blueprint CFO can oversee and advise your accounting and finance department. From preparing general ledger transaction entries to completing month-end closes, forecasting to crafting financial statements, developing customized reporting packages to implementing more effective software, Blueprint CFO can bring you everything from a supportive junior or senior accounting team, all the way to high-level strategic CFO consulting.

Mergers & Acquisitions

Blueprint CFO can partner with company leadership to improve strategic business plans and assist with the development of organizational growth strategy. We can also create financial reporting packages and proformas for capital raises, investments, acquisitions and/or banking requirements, and provide due diligence on company-focused deals.

Financial Planning

We can prepare, create and/or review financial statements. This includes providing trend analysis, developing cash flow projections, and tracking operational and financial performance, with insight into budget and forecast variances.

Banking Services

Our team can help your company to establish high-level banking relationships, and offer expert advice and support when it comes to sourcing bank loans, etc. Additionally, we can review and determine the optimal capital structure for refinancing or a liquidity event.


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