We develop three types of forecasts for our clients.
The first is a forecast based on an Income Statement. We provide a 12-month forecast that will let us see how profit will change over time. By looking at this in the future, we can make decisions now to change that including staffing, marketing, and other fixed costs.
We provide 2 types of cash forecasts
The first is a short-term (usually about 3 months) cash forecast showing cash by week. This is used operationally to determine how to allocate cash. Do we pay bills or pay down the credit card? How much do we need to set aside for payroll? Answers to these kinds of questions are just poor guesses without this kind of forecast. But this forecast takes away the pain of wondering if you'll run out of cash and makes the decision on where to spend it easy. You can see 3 months in advance where your problem weeks are going to show up and you can make changes now to mitigate the cash shortage.
The second is a 12 month cash forecast and is paired with the P&L forecast. This doesn’t show as much detail as the weekly cash forecast, but it shows us the true cash impact of profitability over time.
This is a very actionable way to look at the future. Rather than just looking at profitability, we look at how your metrics will change over time. It gives a very clear picture - not just about if you're going to profitable - but specifically what areas need to change to bring your metrics in line with the benchmarks. It's a powerful tool that gives accurate, clear, concise, and extremely timely data on which to base decisions.
"The speed at which Mr. Jenson operates is something to behold. His computer skills, including highly advanced excel and accounting software, are beyond any I have experienced in my professional career. On several occasions I asked Mr. Jenson to provide a company wide solution to visualize data in dashboard form. We were all amazed at how he was able to turn complexity into simplicity with the solutions he provided." -David L.