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Forecast to beat the cost of living crisis

Author: Futrli

Published: 02 Feb 2023

Your clients need your help. Energy, materials, production… the cost of everything is up. Silver lining? You can forecast inflation and recessions to help mitigate the effects of rainy days. Be the best in forecasting for your clients, they’re really going to need you this year.

Why do my clients need forecasting?

Improved decision-making

As SMEs kick into survival mode, they need to know that the decisions they make are going to keep them in business, or better yet, help them thrive. We make the best decisions in life when we know what the outcomes will be. Forecasting helps us predict the most likely outcomes from our decisions to help achieve goals.

Increased efficiency

See where the screws could be tightened in your clients’ businesses. Which customers eat up 80% of your clients’ time but only account for tiny margins? Do your clients’ inventory costs need to be so high when sales are down this quarter? Spell out the improvements your client could make to help them keep their cash flow healthy.

Better budgeting

Forecasts help small business owners create more accurate budgets. Budgets help inform the day-to-day operations of a business. Your clients will feel they can set financial goals and monitor their progress toward achieving them.

How to make forecasts that accomplish real change

Make it simple

Ensure that your forecasts make sense to your clients. Reports that are visually appealing, make the most of widgets, pivot tables and KPIs, are going to have far more value to clients than a spreadsheet.

Account for late payments

UK small businesses are currently owed a jaw-dropping £23.4 billion in outstanding invoices. The best forecasting technology doesn’t just forecast the due date of bills but processes financial data to work out the most likely day that businesses will be paid. This functionality makes forecasts accurate and far more valuable to your clients.

Make it scalable

Your forecasting solutions need to be able to grow with your practice. Identify the bottlenecks in your advisory processes and see how tech solutions could unlock the potential of your forecasting through automation.

Make it real-time

Ensure that forecasts are grounded in real-time data and linked to your clients’ ledgers. If they aren’t… They’re dated before you have even finished making them. Forecasts are only as good as the data used, so make sure you use the freshest stats!

For forecasting solutions that can scale with your advisory offerings, look to Futrli. Our solution is linked to clients’ source data through Sage, QuickBooks Online and Xero to ensure that forecasts aren’t based on yesterday’s numbers but on the state of your clients’ businesses right now. With drag-and-drop reporting integrated into the platform show forecasts in an easy-to-understand format.

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