Has your business prepared a full re-forecast in these challenging times? If the answer is NO, then now is the time to do it. Or get in touch and I will help you.
Activity may be down; government grants and loans may have been received, cashflow is likely to be uncertain. Revenue, Operating costs, Overheads and Cashflow all need to be reviewed and re-forecast. No easy task but it’s key for any successful business, especially in these times of extreme change.
Numbers on their own can be difficult to visualise……...which is where waterfall charts come into play. Waterfall charts are a neat way of presenting data and explaining the story.
Below is a simple example of a waterfall chart to track budget vs forecast overheads for 2020. I’m sure you would agree it’s much easier to view the movements in this presentation format versus a list of numbers or even a data table. Great for seeing where the variances are highest and require further investigation. Overheads may well be reducing in 2020 but likelihood is revenue will be falling too. That's why it's important to re-forecast on a monthly basis.
Any questions on your accounting, forecasting and reporting give me a shout.
Replies
I've developed this post into a wider article around:
- The current economic environment
- The insights a business owner should expect from their accountant
- Using charts and graph to visualise monthly accounts
You can view the full article here >>
https://www.nkyconsulting.co.uk/shine-a-brighter-light-bring-accoun...
Hi Neil. This must be part of any business's planning for the re-start. Government schemes if you have been fortunate to get access to one, will not last for ever and it would be sensible to re-forecast to give yourself some sense of where you are financially.