What if forecasting – why every business should be doing this
Creating ‘what if’ scenarios in your budgeting can provide several benefits. Firstly, it allows you to anticipate and prepare for unexpected financial situations. By considering different scenarios you can develop plans and make adjustments to your budget in advance. This proactive approach can help you avoid financial stress and minimise the impact of unexpected events.
Secondly, creating ‘what if’ scenarios can help you evaluate the feasibility of your financial goals. It allows you to assess the potential outcomes of different financial decisions and determine if your goals are realistic and achievable. By considering various scenarios, you can make informed choices that align with your long-term financial objectives.
Lastly, ‘what if’ scenarios can enhance your financial decision-making skills. By analysing different scenarios and their potential benefits and consequences, you can develop a deeper understanding of your financial situation and improve your ability to make sound financial choices. This can lead to better financial outcomes and increased confidence in managing your budget.
About Stephen Hambling,
CEO and Founder of Kybos, a UK based Jedox partner.
I provide simple, clear, commercial forward looking financial support to founders, entrepreneurs and CFO’s of Small and Medium sized companies. Typically I’m the special projects guy, commercial troubleshooting, systems help, M&A or cashflow & turnarounds. I’ve implemented several hundred finance systems. Implementations are not a core skill set for the average finance team, so it’s easy for a project to go off track. Clear simple guidance before, during and after an implementation can make the world of difference.
Aout Kybos
Kybos is a dedicated UK Jedox gold partner. We build planning and analysis solutions that deliver value fast using accountancy qualified consultants. Whether you want a fully customised application or to build upon an existing solution, Kybos consultants are here to help.