Michael Barbarita
Joined: 04 Oct 2008
Posts: 8204
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 Posted: Thu Aug 26, 2010 10:50 pm Post subject: The Business Forecast - Good Versus Not Good |
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What is the major difference between a First class business and cash flow forecast and a second rate business and cash flow forecast?
The simple answer is if a business and cash flow forecast does not have a forecasted balance sheet, then it is a second rate forecast. If the balance sheet is missing then cash is not being forecasted. Inventory is not being forecasted. Debt levels are not being forecasted. If a Balance Sheet is not included in the business and cash flow forecast the major risk areas to which you were trying to access cannot be assessed and so you just eliminated one of the main purposes of doing the forecast.
Whether a Part time CFO prepares your forecast or a CPA [re[ares your forecast the bottom line is that a forecasted balance sheet must be included.
Business Forecasting |
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