• 203-441-5834
    • Contact
    • Subscribe
    • Course Login

GrowthCast

Making Cash Flow

Let’s talk about your business

Contact Us for a Free Consultation
  • Home
  • CFO Solutions
    • Initial Consultation
    • The Profit Map™
    • The Profit Plan™
    • CFO VIP
    • Business Growth Accelerator
    • Profitability Quick Start
  • About GrowthCast
    • Fiscal Fitness Bootcamp
    • Speaking Engagements
  • Testimonials
  • Blog
  • Join Fiscal Fitness Bootcamp
    • 203-441-5834
    • Contact
    • Subscribe
    • Course Login

Are you checking your financial statements?

August 20, 2014 by Judi Otton 1 Comment

Are you checking your financial statements?

Standard financial statements are much like a rear-view mirror. They are essential to look into to properly see what’s behind you.

They tell you what happened last month, last quarter, last year. While it’s all good information, it’s not nearly enough. You want to know what’s going to happen (or at least what’s likely to happen) in the future. With this in mind, you can make better decisions – both financial and strategic.

If you’re only looking at your standard financial statements (income statement, balance sheet, statement of cash flows, etc.), you’re not alone. Most business owners focus exclusively on these reports. While you can get some future insight from the aforementioned standard financial reports, there are ways that are vastly more effective.

Financial forecasting can take into account both future events and changes that might not be obvious from your standard financial statements. Examples of this include new business, projects that are ending, changes in expenses due to increases, one time or infrequent expenses, or the costs associated with growth.

Unfortunately, forecasting is not as easy as pressing the “print button” and viewing reports in your accounting system. It takes work, knowledge or a tool like GrowthCast to help. However, if you do take the time (or use a tool), you likely won’t go back. You’ll have a much more detailed and accurate picture of your future than you’d get by just extrapolating the results in your that “rear-view mirror” known as your financial statements. Try it; we’d love to hear about your experience.

Filed Under: Articles Tagged With: Accounting, Cash Flow, Finance Tools, Financial Statementts, Forecasting, GrowthCast, Small Businesses

Trackbacks

  1. The Top 10 Ways to Keep Your Business Financially Healthy says:
    October 7, 2014 at 7:37 pm

    […] Look ahead. Accounting systems can tell you what happened last month, last quarter and last year. While you can make assumptions from that, it’s not nearly as powerful as having leading indicators, a budget and a forecast to steer you right. Read more about why and how here. […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • What does turnover cost?
  • Are you tolerating high overhead?
  • Could you improve your Cost of Goods or Services Sold?
  • Are you tolerating low prices for your products or services?
  • Is your business just squeaking by?

Categories

  • Articles
  • Guest Spots
  • Infographics
  • Offer
  • Product
  • Profit Drains
  • Uncategorized
  • Video

© 2023 &middot GrowthCast LLC

Web Design by Chroma Sites - Westport, CT