Short-term forcasting

¨  Short-term forecasting

Short-term forecasts can look at the next 12 months, the next six months or even the next month. To prepare a short-term forecast we need to look at:

 

 

 

 

 

 

Then we can forecast:

 

Each of these can have a huge impact on the company’s ability to continue in business. How often we review and update our short-term forecast will depend on what is happening in our business: If things are stable, we'll probably want to review our forecast and compare it with results every three to six months. During a period of change, or if we are having cash flow problems, we might revisit our forecast monthly.[1]

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[1] ^{http://businesshelp.lloydstsbbusiness.com/planning/performance/forecasting/}