Forecasting to help with planning

As we all know, there is more to growing a business than simply increasing sales. There are choices to make about staffing, premises, insurance policies, the list goes on.

Written by BW Bookkeeping and Project Solutions - Fri 25th Jun 2021

bookkeeping and business development services

Sitting and having a look at your figures from the past couple of years, and working out what will probably happen to your costs as the sales increase is the first step in basic forecasting. So for example, if you have 30% higher sales next year, what will happen to your staff costs and will you need to pay additional rent?

It takes a little time to work through a forecast, but not only will it help you feel prepared it will also give you targets to work to.  All business experts will tell you that if you start to give yourself a monthly target to aim towards, you will start to see an increase in your turnover.  If you start to measure your performance against a tartget you want to hit, there is an incentive to make the changes needed to grow.

Hitting increased turnover targets and monitoring your costs so that you know if the figures are in line with the forecast or not are two great steps towards not just growing the business, but making sure you are growing the profits at the same time.

Afterall none of us are aiming to grow the sales and end up with a smaller profit in the long term.

BW Bookkeeping and Project Solutions

58 Crosslands
Caddington
Nr Dunstable
Luton
BEDS
LU1 4ER

07825 152951

jen@bwbps.co.uk

Home Page Blog Facebook LinkedIn

We recommend Dunstable accountancy practice
Spicer and Co

BW Bookkeeping logo

Quickbooks Advanced Certified Pro Adviser

Testimonials

We have been a client of BW Bookkeeping since 2017 and rely on them for a range of services. They helped us change from a sole trader to a limited company and handle all our banking and VAT.
Mason Grab Hire Ltd, Aston Clinton

It was an experiment but BW has done my end of year tax return for 2 years now. Makes it all very easy and answers any questions. Takes all the stress out of my tax return so I can concentrate on my business.
Jaqueline Parkinson, Harpenden

I learned more about how to direct my business in 20 minutes talking to Jen than in 4 years of meetings with my accountant.
Rob L, Aston Clinton

Quickbooks Advanced Certified Pro Adviser