End of year projections
End of year projections:
It is important to have realistic end of year projections, an ability to forecast revenue and expenses so that investors, business owners and Boards can make sound decisions regarding growth. Your financial projections are a quick overview and analysis of your financial health based on history or, if you are a new company, your research. There are many online tools you can use as a template for getting started.
This important tool will help companies make necessary adjustments to their spending and focus as the year progresses. Most companies do like to see a conservative and aggressive projection (a best and worst case scenario) so that it can be even more realistic. It allows you to be optimistic about growth, but also adjust if an opportunity does not materialize.
Forecasts should be updated on a regular basis so that actuals are reported and your conservative and aggressive projections become more similar.
Why do I need a CFO?
You didn't start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.