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Four financial forecasting rules that will help make 2015 your company's most prosperous year yet

by , 05 November 2014
We're eight and a half weeks away from the end of 2014. That means one thing and one thing only: It's time to start forecasting your finances for 2015.

The aim of this is to prepare your business for the coming year and the financial troubles and triumphs it may bring.

Now you can do this any old way and 2015 will just be another mediocre financial year.

But, if you follow these four financial forecasting rules, you could make the new year the most prosperous your company has ever had...

 

Make 2015 a prosperous year by following these four financial forecasting rules

 
Rule #1: Use the current year's figures to help you create realistic targets for the next year
Use your figures from 2014 to help you predict what 2015 will be like. For example, if your company experienced a huge growth spurt this year, it may experience more of the same next year. 
 
Using current figures in your forecasting will also help you find areas of strength and weakness in your business.
 
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Rule #2: Consider the current economic climate
If the economy isn't doing well and it won't improve in 2015, chances are your business won't experience any growth. Keep this in mind when you do your forecasting and put measures in place now in case of financial difficulty.
 
Rule #3: Keep your targets realistic while still pushing for more growth
If your company achieved a R70 000 growth in 2014, aim to grow by another R70 000, if not R75 000.
 
This is realistic because you did it this year, so you should be able to do it again next year.
 
Rule #4: Take your staff numbers into account during your forecasting
More employees mean more expenses, but it also means more productivity. If you want your company to grow in numbers during 2015, consider how this will help you grow financially too.
 
Following these rules will help you predict problems that you can prepare for, and opportunities you can take advantage of. This will help you make 2015 a more prosperous years.
 

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