Businesses rely on financial resources for survival. If we’ve learned anything throughout the pandemic, it’s that if you’re running a business, it’s imperative that you deploy your resources in the most efficient manner possible. For companies, this is where financial forecasting is critical.
A financial forecast is like a road map for your organization; it shows you exactly where you’re going and what it takes for your company to get there. It’s an estimate of your company’s income and expenses for the foreseeable future.
Companies that opt to use financial forecasting software have numerous advantages to gain from it.
Calculates your company’s profitability
The ability to compare your future financial performance to predetermined benchmarks is a critical part of financial forecasting. It serves as a yardstick by which you may measure your progress, spot inconsistencies, and make required adjustments.
Dramatically Reduces Financial risks
Using financial forecasting, you can pinpoint which operations cost you the most money. Reducing your financial risks by diverting money from these activities to more productive endeavors is possible. It gives you a comprehensive picture of prospective threats and helps you create appropriate avoidance tactics.
It helps plan for your future financial needs
Decide how much money your firm will need by analyzing your predicted expenses. Financial forecasting software helps you make informed financial decisions if your business requires private equity or borrowings.
Improves cash flow management
The ability to accurately anticipate a company’s cash flow is critical for any firm, but it is conducive for startups. Using this tool, you can better allocate your resources and direct your money in the proper path.
Measures your company’s potential for new opportunities
A financial projection depicts the likelihood that a new endeavor will be profitable. There is a way to determine whether or not this is a good idea based on the predicted income and projected expenses. In this way, you may build a model to predict how a company will perform in the future if particular strategies and goals are implemented.
Better Financial Performance & Lower Costs with Performance Canvas
While SaaS financial forecasting software may appear to be more expensive at first glance, the total cost of ownership is far lower than with an on-premise license.
Performance Canvas is an example of a financial planning and analysis software that does not require additional hardware investments. When the convenience of installation is taken into account, organizations may save more money in the long run. This means that the finance department may take full responsibility for the solution.
Updates to software might be expensive for some depending on the vendor, but they are necessary to ensure that teams are constantly working with a system compatible with other software and apps. PCF Cloud, for example, automatically pushes out updates FOR FREE with perfect monthly patching to ensure teams always have the newest software version. In addition, PCF’s subscription price allows enterprises to select the functionalities that best suit their business’s requirements. It’s easy and strategic to use PCF Cloud for your expanding business’ robust cloud planning, budget, reporting, and forecasting, thanks to a fully integrated software solution and different secure environments.
In addition to reporting and ad hoc analysis, Performance Canvas provides an intuitive financial dashboard with an easy-to-modify environment for a clear and efficient presentation of key figures.
PCF supports Excel (alongside the web version) for traditional users while giving users the freedom to employ advanced reporting features, which provide better transparency and accuracy for their daily reporting needs.
If you’re looking for financial planning and analysis FP&A that has advanced forecasting features, Performance Canvas is your best bet.
Get in touch with our team at PCF and book a free demo today.
