Financial forecasting involves projecting a business’s upcoming financial performance where the key elements are revenues, expenses and cash flow.
The prediction is based on previous financial data, records and trends.
Financial forecasting is a step for making informed business decisions and other relevant data for a successful and long term business planning.
Whereas, Budgeting is the process of making a financial plan for a period of time like a year or so. It involves setting up financial goals and allocating resources such as money, time and people achieve those certain goals.
The difference between the two is really simple that is budget will tell you where a business wants to go and forecast will tell you where the business is actually going.
Here are a few efficient key tips to ensure successful financial forecasting and budgeting in the UAE:
- Understand the local market: Make yourself familiar with the unique economic and market conditions in UAE. One needs to consider all factors as it can impact on the business.
- Know the risks and constraints: After one understands the market value and research, they need to know research a better on the risks and constraints of a business because any instance can create a risk that a new market could take over.
- Have a clear vision: Once, the market and risks and understood, its time to set some goals which have a clear and concrete aim to achieve for the business. These goals should be long term and should align with your long term plans.
- Assist multiple scenarios: As a country keeps on changing so does their economy and market, keeping this in mind, various scenarios need to be developed and worked upon so that if there’s any change, a business can immediately act.
- Collaborate with local experts: Nobody knows this business better than the local experts which are financially skilled, consultants or advisors who can provide you with the most valuable and accurate insights regarding businesses.
Overall the key is to successfully and efficiently have your business budgeted and financially forecasted in UAE to have an understanding of the market and where your business stands and it is furthermore very important to have relevant people around it.
It is always beneficial to take help and advice from a professional who has been in this niche for long enough now and can guide you well.
If you are a start up or at really any stage of your business, these are a few elements one needs to keep in mind before any decision making. The success solely depends on the best decision making and our team will do that for you with their skill and experience.
Contact us at AB Capital and get a free consultancy right now for any of your business and accounting needs.