Most businesses can’t predict exactly where they will be in the next year. A sound budget is like a road map that gets clearer as you get closer to your destination. Point A and point B are fixed essentials despite any obstacles or detours. With these and major milestones laid out, the finer details can become more clearly defined and dealt with as they present themselves.

As the year end gets closer with varying revenue streams and distribution channels, the opportunity for profit grows, but so does the complexity. A forecast is the update of the annual budget each month as the new information comes in or in other words the defining of the finer details and decisions that arise along the way.

As we see the position of the business more clearly each month we can explain why and how the course has changed and what avenue is more or less favorable in the coming months. We can then run “what if” scenarios to see where each of these paths will take the business in order to minimize liability and risk.