Forecasting is an important aspect of management process and gives a rough estimate on how a firm might perform in the upcoming period. There are various methods that can be followed to make budget forecasting more effective. This presentation lists the tips that businesses can follow for effective budget forecasting. Invensis provides accurate financial reports and statements to help you assess your company’s fiscal performance over the ongoing and previous financial period. Improve your company’s cash flow and income by partnering with Invensis Technologies (http://www.invensis.net). Invensis Technologies is an ISO certified and a leading Business Process Outsourcing company and our experienced and qualified accountants will give you the exact fiscal status of your company at any given point in time to help you make educated decisions. For more details please visit: http://www.invensis.net/finance-accounting-bpo/outsource-financial-analysis-reporting-services.php To find out more about our services and benefits of partnering with us, please contact us at sales{at}invensis{dot}net or you can call us from US +1(302)-261-9036 ; UK +44 203 411 0183 ; AUS +61 3 8820 5183 ; IND +91 80 41155233

1. 14 Ways to
Improve Budget
Forecasting

2. Business budget forecasting
is a management process
where future plans are
charted out keeping the past
in mind.

3. A firm’s performance in the upcoming
period can be judged using forecasting.

4. But many businesses
don’t give much
importance to
forecasting which results
in lower earnings for the
firm.

5. Some Valuable Tips for Effective Budget
Forecasting are…

6. Do not Ignore Forecasting1.

7. Budget Forecasting might
seem like a daunting task
but not carrying out one is
a recipe for certain
disaster.

8. If budget forecasting is not done,
businesses might be in the dark about when
it will have money to pay back its creditors.

9. Include all Elements2.

10. Not only cash flow, but all aspects
of a business such as expenses and
quarterly taxes must be taken into
consideration during forecasting.

11. Not Just an Annual Activity3.

12. Budget forecasting must be
carried out at regular
intervals of time to keep up
with the changing economic
conditions around the world.

13. Know Your Customer (KYC)4.

14. Before creating a budget forecast,
businesses must perform KYC to
understand customer’s payment habits
and get a rough idea about when the
business can expect the money in hand.

15. Know the Market5.

16. Market dynamics have to be taken into
consideration during forecasting and
should not solely depend on business
performance and forecasted
performance alone.

17. Rein in the Credits6.

18. Poor credit control can have a huge impact
on budget forecasts.

19. Interest and Rates7.

20. Businesses must keep track of
the various interest rates they
have to pay on overdrafts or
loans and forecast accordingly.

21. Plan for not only the worst
but the best too8.

22. Forecasts are usually carried out
for the worst case scenario but it’s
usually during the best phases
that businesses fail to rise to the
occasion as it was not forecasted.

23. Forecast the Discounts9.

24. Product discounts increases the requirement
of inventories and therefore must be planned
along with sales and inventories.

25. Use all the Tools at
your Disposal
10.

26. To achieve accuracy in budget forecasting, software
such as sage and tools such as bank balance projection,
individual sales target, annual budget and monthly re-
forecast of cash flow and revenue must be utilized
judiciously.

27. Be Patient11.

28. Budget forecasting is a result of coordinated team effort and
requires some time and thought. Patience is the key here as
forecasting accuracy can be attained only with practice.

29. Avoid too much detailing
and high optimism
12.

30. Forecast can go haywire
when businesses try to
forecast every little expense
and high optimism can lead
to insufficient cash with
companies as they forecast
higher sales.

31. Tradeoffs13.

32. With finite resources, businesses must decide
which items can be traded off for something it did
not forecast in order to prevent overspending.

33. Checking the Final Numbers14.

34. The budget forecasts must be
crosschecked with historical and
industry trends to ascertain its reliability.

35. Businesses must perform result analysis after
forecasting and just before another budget
exercise begins.

36. Result analysis can answer
key questions which help
businesses become better at
forecasting and increase their
earnings, sales and cash flow.

37. Invensis provides a wide range of Finance and
Accounting Services which provides precious insights
about your company to help it gain an edge in the market.

38. Finance and Accounting Services
provided by Invensis include…
Financial Analysis Reporting
Accounting and Bookkeeping
Tax Preparation Services
Real Estate Title Services
Record to Report Services
Payroll Processing Services

39. Invensis is an ISO 9001 and 27001
certified company and has served
200+ clients around the world.

40. To find out more about the services offered and
benefits of partnering with Invensis, please
contact us at sales@invensis.net