This pandemic has undoubtedly left you with many decisions to make and there is the pressure that the outcomes of these choices will either lead to the success or the downfall of your business. There are also the various COVID-19 business support schemes to consider - some that are automatic, such as VAT payment deferral, and others you have the option to apply for yourself, including the Coronavirus Business Interruption Loan Scheme (CBILS), PAYE tax payment deferral and more.
With all of these considerations and options available, you need to have the sufficient forecasting tools to help you make the right decisions.
Having a properly constructed forecast which shows the impact of key business decisions such as ‘What if I keep all my staff but my debtors don’t pay me?’ and ‘Do I need to get a loan and how much?’ is critical. The forecast will allow you to answer those questions and make the right decisions to see your business through this uncertain period.
A forecast is also a necessity when applying for funding. Additional scrutiny is being applied to forecasts including testing any sensitives such as prolonged reduction in revenues. A more detailed short-term forecast (13 weeks) is not a necessity but if prepared, goes a long way to showing the lender that you are on top of everything and are a credible management team that can navigate not only the current climate but guide the business in the long term.
We can help you to develop both a short-term 13 week forecast as well as a longer term forecast to help you make those important decisions.
This article was last updated on 23 March 2020.