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Forecasting

Steering the Ship Thanks to the Numbers | Accountancy Advice
Steering the ship thanks to the numbers 758 513 Stepping Stones Accountancy

Steering the ship thanks to the numbers

The concept of ‘steering by numbers’ is a business strategy of forecasting, planning and analysis. This very simple idea will look at business logic from a forecast and budget model which then allows comparisons between performance and expectation.

We now live in a data driven world and the modern way of finance can choose how to generate forecasting. They can explore through artificial intelligence (ai) and then get specialists to translate it into meaningful and useful data. Alternatively, you can take the simplest of approaches; you set a target based on previous results and you take the actions needed to achieve success.

If we explore this simple approach, we really are saying that you are steering your ship thanks to the numbers. You have a vision and an idea of what the journey to success will be and you translate the performance numbers into your goals. Setting objectives and a clear budget that will help to keep you travelling in the right direction with as little deviation as possible.

Of course, while the process does seem like a simple one, by just following the numbers, we know that there can always be an unaccounted influence on any journey. At times you will have to adapt to varying circumstances. Using our shipping analogy, the weather could change and we might have to detour slightly to safely navigate through the storm. Forecasting and budgeting is not always easy but with the help of business leaders and specialists you can quite quickly get back on track.

Another factor to consider is a business could have sufficient budget funds available but if they do not have any detail around planning or strategy then how can we measure success? If you budget and plan based on performance and accurate strategy, then you are on the right track to achieve success. Strong foundations in numbers, makes the planning process easy and enables safe navigation to your onward destination.

The one final element to help is the storage of all the data so that the numbers are on hand as and when you need them. Again, back to our shipping analogy this is the ships navigation system that helps you navigate throughout your journey, even if you manage to slip off-course. By utilising technology (e.g., Xero or Quickbooks) to help you with your budgeting and forecasting, the process is made even simpler.

If you are looking for a little help with your numbers or need a little bit of guidance, please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk. You can also book a free 30-minute call with Yarka – https://calendly.com/yarka-ssa/30min

Managing Cashflow 150 150 Stepping Stones Accountancy

Managing Cashflow

In our latest animated video we show how with a little bit of help from your accountant and a cashflow forecast report, you can budget for new equipment that is needed in your business.

Cashflow Forecasting | Business Support with Cashflow | Accountancy Help Bristol | Help Planning Cashflow
Cashflow Forecasting 758 513 Stepping Stones Accountancy

Cashflow Forecasting

Cashflow has never been more important for businesses than in 2020. The Coronavirus pandemic has shaken businesses to the core and with the potential of a second wave a potential second wave, company owners are left wondering if their business can survive another lockdown.

With government support tapering and uncertainty about what the next few months hold, cashflow forecasting is vital to understand the position of the business. Historically, many owners have worked this out in their heads or in convoluted spreadsheets but the danger is that something gets forgotten and a large, unaccounted for, outgoing could cripple the business.

Now, more than ever, accounting software is vital. A simple, easy to understand, forecasting tool that helps businesses understand their financial position and identify areas for concern, before they become overwhelming, is something that can help businesses navigate the turbulent months ahead. By understanding the business needs in advance, company owners can try to mitigate any risks identified, putting them in a stronger position to survive any further lockdowns that may come.

Our job is to guide you through the implementation and interpretation of the data in order to provide accurate cashflow forecasting. Making the process as simple and easy to manage as possible will ensure that you have real time data, providing accurate updates at any time to help underpin any vital business decisions that need to be made.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.

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