7 Tips to Demystify Financial Forecasting and Strengthen Your Business

Sponsored By BMOWhat is financial forecasting?What would you do if over half of your business’s revenue was delayed? Run out of cash? Panic? Or strategically shift to your backup plan and carry on? With good financial forecasting, you could be prepared for the reality that 61% of invoices are being paid late this year.Financial forecasts help business owners anticipate and plan for the future. If you don’t have one yet, don’t sweat it: Many businesses don’t. After all, nobody seeks entrepreneurship because they love paperwork. But, a financial forecast is a surprisingly simple tool that can help you survive shocks to your business and thrive.You’ll find many free financial forecast templates online. Before putting pen to paper though (or numbers into cells, more likely), understanding these seven principles can help you approach financial forecasting with confidence.Financial forecasting tips to consider1. Understand who (and what) your forecast is forThere are two general audiences for your financial forecast: People outside your organization and people inside of it.Externally, you’re creating it for lenders, investors, mentors, business partners and even potential buyers who will want to make sure you have a deep understanding of your business so they can decide whether to invest or...