Let Us Build Your Blueprint

Long-term forecasts can serve as blueprints that help you more strategically build your business. By projecting operational numbers and identifying targets, our CFO forecasting services can provide a plan that guides you each step of the way.

All of our financial plans and forecasts begin with a detailed interview of key personnel. This information-gathering activity helps our team to understand both short and long-term objectives. It also helps us analyze and identify immediate challenges, needs and performance gaps.

Once we have a solid base of the financial situation and the desired direction of the management, we are able to build quarterly projections for profitability and tax planning and begin to use this information to steer operations. Shortly thereafter, we begin work on the long-term forecast, constantly incorporating the latest data and reevaluating targets.

Using either quantitative or qualitative models, we are able to apply historical forecasting methods to solve operational problems using real variables and industry best practices.

2 Forecasting Models

Lescault and Walderman CFOs utilize two primary Forecasting Models.  Qualitative Models, used for short-term forecasts, involve market research and/or field expert research to produce a consensus on the efficacy of products/services and overall company objectives, relying on educated, representative opinions rather than measurable data.

In contrast, Quantitative Models focus completely on data in attempt to remove the human element from predictions.  They might include an indicator approach (utilizing relationships between indicators), an econometric approach (more deeply testing the relationships between data sets), or a time series approach (multiple methodologies that utilize past data to predict future outcomes).  Whatever your circumstance and forecasting needs, our expert CFOs are ready to select and prepare the ideal forecast to help you manage expectations and operations.

Our Forecasting Process

Regardless of methodology, all of our forecasting services follow the same basic process:

1. Selection of a problem or data
2. Selection of appropriate model
3. Identification of data and variables
4. Selection of forecast time frame
5. Analysis of data and/or feedback
6. Verification of results

All of our Forecasting Services offer relevant and reliable information on the outcome of past events and the probability of future events, providing a solid foundation for business planning, decision-making, and prioritization.

Creating and employing effective forecasts help keep managers alert and accountable to the many changes and challenges of your business.

Keys to Useful Forecasts

Forecasts do have a few limitations. That’s why we adhere to the following guidelines when selecting and preparing them:

1. Understand context and limitations. Identify misleading or biased results and advocate individual diligence and judgment.
2. Recognize the path of change. Understand how the forecast will unfold and prepare for “surprises”.
3. Accept outliers. Not all data will fit neatly into the model.  Carefully consider outside results.
4. Remain open. Treat forecasts as a management tool, but don’t rely too heavily on them as the sole source for decision-making.
5. Maintain proper perspective. Incorporate as much historical data as possible.  The longer the look back – the more reliable the look forward.