Elevate create exceptional financial forecasts. This is our speciality.

Three-Way Financial Forecasts

A three-way financial forecast is a forecast model that comprises a Profit & Loss Statement, Balance Sheet and Cash Flow Statement. This level of forecasting provides not only a snapshot of the expected future profitability, but also the cash flow implications and associated balance sheet.

Our team has prepared countless three-way forecast models over the past decade. The process has evolved particularly over the past five years and we are no longer required to build a complicated forecast model in a spreadsheet from the ground up. This tends to be a time consuming and expensive exercise. Our preferred approach is to utilise a sophisticated forecasting software program which allows to us produce extremely high quality forecasts using existing data maintained by our clients. This provides higher quality forecasts at a lower price.

Three-way financial forecasts are suitable in a range of situations:

  • To support finance applications for banks
  • To assist in preparing for business sales (required for due diligence)
  • To allow business owner’s and management to conduct scenario planning
  • To help business owner’s to manage difficult financial situations
  • To satisfy the reporting requirements for Directors and the Board
  • To support ATO debt repayment proposals

Financial forecasts are designed to help map out the future financial performance of the business based on the current (or planned) strategy. We encourage our clients to formulate a strategic plan before undertaking a forecasting exercise, to ensure that the forecasts are representative of and supported by the future strategy.

If you would like to understand how a three-way financial forecast can assist you, or to view some examples, please contact us.

Financial Modelling

Financial modelling is a process that links projects, ideas and opportunities to the associated financial outcomes or alternatives. We assist our clients to understand the financial impacts of the future events that they are considering. We often find that this is necessary when a business does not have sufficient internal resources to undertake what is often complex financial modelling in-house.

Some examples of situations which require financial modelling include:

  • Modelling the financial impact of large tenders for construction businesses (to understand the working capital cycle associated with the contract duration, including impact of retentions and the requirement to sign statutory declarations confirming subcontractors have been paid)
  • Modelling the impact of cost cutting exercises within the business
  • Modelling the integration of a business acquisition or divestment
  • Scenario modelling the various strategies that are available when pursuing business growth options

If you require assistance to understand the financial impact of your projects, ideas and opportunities please contact us to discuss how Elevate can help.