Forecasts
When drawing up a forecast or budget, we make a calculation for future periods. From a financial perspective, we distinguish the following types of forecasts:
- Operating budget: in an operating budget you forecast the turnover and costs for the future period, in order to achieve the expected profit or loss for that period.
- Liquidity forecast: with a liquidity forecast, future cash flows are forecast and the expected movements in liquid assets (bank and cash balances) are made transparent.
- Balance sheet forecast: in the balance sheet forecast the future balance sheet positions are forecast.
In the most optimal situation, the different types of forecasts are used in combination.
Different scenarios
Depending on the purpose of the forecast, the duration and the associated time units are determined. For example, a long-term forecast can be drawn up with a term of 25 years, with forecasts per year. However, a forecast can also be drawn up for a month, with a daily forecast. In addition to different durations, forecasts can also be calculated in different scenarios. A good forecast can be used very widely. For example with:
- Cost price calculations
- Investment decisions
- Business plans
- Value calculations
- Financing applications
- Budgeting issues
- Strategic issues
A forecast is a versatile product that, in addition to the purposes mentioned earlier, creates a better understanding of things like cost structure and behaviours, seasonal patterns, and the basis for the company’s profitability.
Our advisors have extensive experience in developing forecasts and are happy to support you in developing a forecast for your entrepreneurial activities.
Make an appointment with one of our advisors.