Financial Forecasting and Modelling requires a thorough understanding of the business or project including what drives value. Understanding and analysis of the market and the industry the business operates within is consequently important.

The process of building a robust financial model (financial forecasting) should challenge the business owner to consider all potential risks and opportunities in context.

This is especially important with any financial modelling required for access to capital, as all assumptions need to be supported and defend-able.

Forecasting is important in businesses where cash flow is a challenge. A business can appear profitable but have timing mismatch in terms of receiving cash from sales to meet supplier terms of trade, so careful management of working capital is needed. It is useful to have an idea of the timing of cash-flow issues. We can also introduce systems to manage cash-flow in a timely manner or can organise a borrowing mechanism to avoid this.

There are situations where forecasts need to be tracked to actual performance, either in driving performance, managing overhead, or driving other strategic initiatives.

We have the expertise to complete financial models in any context including the following:

• Integrated Forecasting (Forecast financial performance, cash flow and financial position).
• Business plans and feasibility.
• Property Development feasibility.
• Project Evaluation.
• Business Process Analysis.
• Forecasting and Modelling for Capital Raising/Borrowing.

For further information, please contact Joshna Mistry, one of the Value Added Services team.  Joshna Mistry Em: joshna@gilshep.co.nz Read Joshna’s profile here…