How a Financial Forecast Can Be Your Competitive Advantage

How a Financial Forecast Can Be Your Competitive Advantage

Did you know that approximately 20% of small businesses fail within the first year? When you started your company, you had to determine what your business model was going to be and what needed to be done to bring in revenue.

Of course, offering a good product or service and building a solid marketing strategy is vital. But other things come into play if you want to have a competitive advantage and scale.

As a business owner, having these elements translated into solid figures can help. Creating a financial forecast will ensure that your company remains profitable in the long run as you grow.

What Is a Financial Forecast?

In business, a financial forecast is a projection of the income, expenses, and cash flow that your business can expect over a period of time. This allows you to have a clear view of your financial health and to plan effectively for your company’s future.

What Are the Advantages of Building a Financial Forecast?

If you’re still unsure whether you should create a financial for your business, here are some of the advantages that might convince you.

The Ability to Make Appropriate Decisions

Financial forecasting allows you to make informed decisions about your business and your financial needs. For example, a forecast can help you determine how much inventory you will need every month to meet demand without ending up with too much excess.


Financial forecasts can help you budget for all of your business expenses so that you never go overboard in any one area. If you spend money blindly, it can put your business at risk. But even small errors in budgeting can add up over time. Spot the trends in your spending with a financial forecast so that you can trim your budget accordingly to enjoy the best possible return on your investments.

Getting Funding

Financial forecasts are a key element that investors take into account to determine whether your business is worth investing in. Your forecast will also support future loan applications, as they give banks great insight into your ability to repay a loan in the long run.

Be Prepared

Financial forecasts take different what-if scenarios into account to determine the impact of each possible outcome and to make plans accordingly.

Tax Planning

Forecasts can even help you prepare for tax season. Tax planning is not fun for anyone, but you don’t want to wait until December to run the numbers and find out that you might owe more than you expected.

How to Build a Financial Forecast

First and foremost, do not hesitate to use financial advisory services to help you build an accurate forecast! When you do, here are some of the steps that you can expect an advisor to guide you through.

Sales Forecast

Prepare a forecast of your company’s revenue by indicating the amount of sales your business expects to generate monthly and annually.

Expense Forecast

List the main expenses that are necessary for your company to run properly. This includes both fixed and variable expenses, such as rent, payroll, utilities, taxes, fees (legal, accounting, insurance), costs related to marketing, supplies, and more.

Cash Flow Statement

Once you have your revenues and expenses sorted out, you can use them to determine your cash flow.

Get Help from the Financial Experts at Stratlign

At Stratlign, our team is composed of growth-driven accountants that will help you throughout your journey to success. From bookkeeping to financial forecasting and strategy advising, we can fulfill all of your accounting needs, walk you through growth and expansion, and help to give your business the competitive edge that you need. Reach out to us now by giving us a call or filling out our easy-to-use contact form.


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Justice Bragg

Business Development Specialist, Florida

At work, Justice is passionate about helping the team make decisions and connections that propel the business forward. He prioritizes client satisfaction by serving as a medium to facilitate communication to the proper channels making sure every issue is properly addressed.

Outside of work, Justice enjoys exercising by going to the gym and playing pickleball with his friends. He is a self-proclaimed foodie who can’t say no to trying a new restaurant, sometimes even immediately regretting it.

Zachary Williams

Staff Accountant, Florida

At Level Accounting, Zach is responsible for bookkeeping & payroll. He is dedicated to ensuring financial success for our clients.

Beyond the office walls, Zach’s weekends are filled with adventure, whether he’s exploring Florida’s hidden gems with his wife or battling it out in tournaments. When it’s time to unwind, you’ll find him at the movies or casting his line out for a relaxing fishing session.

Melanie Jerome, MBA


Meet Melanie J, one of our senior staff accountants! Melanie ensures your financial health with precision and expertise. Beyond the office, she’s a true crime enthusiast who loves traveling and outdoor adventures. Whether she’s balancing books or exploring new trails, MJ’s dedication and skill set the standard for excellence in our team.

Seren Lunsford, MBA


Meet Seren, one of our dedicated staff accountants here at level accounting! She is responsible for bookkeeping & payroll. Outside of the office, you can find her on the sidelines of a soccer pitch, karting track, or baseball diamond, cheering on her two active boys. Seren is also a proud owner of two gentle giants, her beloved Great Danes. In her downtime, she channels her creativity into baking and decorating sugar cookies, always eager to experiment with new baked goods ideas and recipes. With her expertise in accounting and her passion for family, pets, and baking, Seren brings a unique blend of professionalism and warmth to our team.

Ivette Rivera


Ivette Rivera is our Executive Assistant at Level Accounting, juggling schedules and keeping things running smooth.

When she’s not crushing it at work, Ivette is an avid participant in her church community. As a mom, she’s all about those quality moments, whether it’s baking up a storm, hitting the water for some kayaking fun, or just chilling with a good book or binge-worthy show. And let’s not forget her partners in crime at home: Harley Quinn, the fridge-raiding pit bull, and Atlas, the cat who rules the roost. Ivette’s all about that balance between work hustle and personal bliss.