Test how the decisions your business is facing can affect your cash balance moving forward.
How would hiring a new salesperson affect your business? Sales may increase but so will your expenses. Will it be profitable?
How would your bottom line be affected if you sign a new customer? They’ll bring in more business but require more work hours from your employees.
Forecast scenarios allow you to simulate simple or complex sequences of changes. You can use scenario forecasting or multiple cash flow scenario forecasting to see the impact of every option on the table.
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It makes cash flow forecasting dead simple, all QuickBooks updates are automatically updated in the app, new invoices or bills are integrated into the forecast.
Test changes in any financial aspect of your business: Payroll, salaries, include or exclude customers’ invoices, vendors’ bills, and much more.
Changes will only affect the forecast scenario you are testing. Other forecasts will not be affected and the data in your accounting software (QuickBooks Desktop, QuickBooks Online, Xero etc.) will not be affected at all.
Forecasting takes existing data and shows you what will likely happen moving forward, assuming that things remain constant. This lets you see the likely course of business so you can plan. Scenarios, on the other hand, show you what could happen in multiple hypothetical situations. While we can’t know the future, we can see how possible events would impact the business so we can prepare a plan for each anticipated event. Both forecasts and scenario planning are important because we need to know the possible outcomes of different potential events and we also need to know the most likely future result we’re moving toward right now.
Test changes in any financial aspect of your business: Payroll, salaries, include or exclude customers’ invoices, vendors’ bills, and much more. Changes will only affect the forecast scenario you are testing. Other forecasts will not be affected and the data in your accounting software (QuickBooks Desktop QuickBooks Online, Xero etc.) will not be affected at all.
Scenarios can answer very important questions
Use Scenarios to test events that occur only once, such as a one time purchase, or changes that will have a recurring effect on your business, such as hiring a new employee, or increasing your rent.
Scenarios can easily be used to test multiple changes in cases where one change triggers others. For example: