Wouldn’t it be great to see six months into the future?
While we can’t hand you a crystal ball, we can offer the next best thing: financial forecasting.
At NPS, we’ve seen firsthand how transformative this process can be for small business owners. It’s not just about numbers… it’s about reclaiming confidence, clarity, and control over your business decisions. When you forecast, you stop guessing whether you can afford that next hire or survive a seasonal slowdown. You start leading with purpose.
So, what is financial forecasting, really?
It’s a method to project your future revenue, expenses, and cash flow. It draws from historical data and planned activity, helping you anticipate outcomes instead of reacting to surprises. Instead of crossing your fingers at tax time, you’re moving forward with strategy and intention.
Why Forecasting Matters
- It helps you avoid cash shortages.
- It guides key decisions: hiring, investing, pricing.
- It makes your business proactive instead of reactive.
Forecasting isn’t about perfection. It’s about preparation.
Let’s break it down into six steps:
- Review Your History: Look at the past 6-12 months. What’s normal? What’s noisy?
- Spot Trends: Busy season? Slow spells? Recurring expenses creeping upward?
- Project Income Conservatively: Think in terms of “likely,” not “hoped for.”
- Estimate Expenses: Separate fixed costs (salaries, rent) from variable ones (travel, marketing).
- Flag One-Time Costs: Big purchases, software upgrades, tax bills… plan for them now.
- Build a Cash Flow Plan: This is your weather forecast. Prepare for the rainy days.
Don’t Go It Alone
You don’t have to do this with a yellow pad and late-night coffee. Use your tools:
- QuickBooks or Xero for tracking trends.
- Dashboards for visualizing your financial future.
- Spreadsheets if you’re hands-on with the numbers.
Just avoid a few classic pitfalls:
- Don’t be overly optimistic. Hope for the best, plan for the worst.
- Don’t ignore the economy. Your forecast should flex as conditions change.
- And please, don’t “set it and forget it.” Your forecast should evolve with you.
We understand that financial forecasting can feel intimidating. But it’s one of the most empowering things you can do as a business owner. And if you’re not paying yourself enough, or if you feel like your revenue story doesn’t match your lifestyle, forecasting is your path forward.
Let us help you build that path. With our fractional CFO services, we bring clarity to chaos and strategy to your stress.
🔗 Schedule a free call with us today. Your next six months could look very different. Let’s forecast them together.