
Financial forecasting services
in the Philippines
Benefits of financial forecasts, planning
and budgeting services
- Cashflow management to track your company's cash position
- Make key commercial decisions based on accurate underlying financial data
- Mitigate and avoid future financial risks that can impact growth
- Help investors and shareholders understand the financial outlook of your business

The Short Term
- We work with you to develop monthly, quarterly and yearly financial budgets as part of a robust financial planning framework
- We identify your key drivers of income, direct, and overhead expenses for each financial period
- We generate profit margin projections, assist with materials and service costings, and identify key areas for cost efficiencies

The Long Term
- We do an expert analysis of your company's current financial status against overall business objectives.
- We develop a long-term strategy based on available and projected financial resources.
- We identify, monitor, and report on key performance indicators (KPIs) to evaluate business performance and strategic effectiveness.
Why does your PH business need budgeting and financial forecasting services?

Understanding Financial Planning - Budgets and Forecasts
When it comes to the benefits of budgeting and financial forecasting, there are some key differences that business founders, owners, and managers need to understand from the outset. While budgeting deals with more day-to-day business objectives and forecasting deals with higher-level strategic matters, both financial activities can be instrumental in helping a business achieve real sustainable growth.
A company’s budget generally includes estimates around income and expenses, a forward-looking balance sheet that outlines likely assets and liabilities, and a cash flow budget. It is an estimate of what the management believes the company can achieve financially during the budgeted period. Budgets usually cover a time period of a year or less
At the end of the budgeted period or, perhaps, at regular intervals during the budgeted period, the management should ensure to perform a review to understand if actual operations and activities are in line with the budget. If the budget is misaligned significantly, management must act quickly to understand why and take action.
Meanwhile, a financial forecast is used to anticipate the overall financial health or financial status of a company at a point in time in the future and covers a longer-term period of more than one year. The management develops and completes forecasts through the historical and current financial data relevant to the ongoing business activity. This is then used to identify and understand the direction the company is heading from a financial position perspective. A forecast will also take into account new business strategies that are likely to have implications for the finances of the business.

Cashflow Management Services
Cash flow budgets help to identify where there might be future cash shortages or surpluses, and when these shortages or surpluses are likely to arise. With this kind of information in hand, a company’s management team can move proactively to deal with these kinds of situations in advance.
For example, upon identifying fluctuations in the cash flow budget, a company might decide to obtain a business loan for “down” months, seek to negotiate terms with vendors, or delay certain strategic projects until cash flow is looking more positive. On the flip side, a company might identify periods of additional cash reserves and opt to move forward with business initiatives, plan strategic investments, or retain the cash for a rainy day.
A financial forecast can also guide management to take immediate action when situations are likely to arise that might have serious and negative implications on cash flow. The financial forecast guards the company against financial risks that would otherwise impact them if it had not been for their financial forecasting activities. Not to mention, that is just good business practice to have financial planning in place and ensure that the cash flow of the business is constantly being monitored and measured.
Cashflow management is an essential part of running any business and should be a continuous process. It is one of the most important financial activities that a business can perform. A cash flow management service will put in place robust processes and controls to ensure that cash flow management is always being conducted.

Financial Risk Management
The type of financial risks that a business may face will depend on the industry or business model of each company. Through proper preparation and review of budgets on a regular basis, the company can identify the financial implications of undertaking a proposed business strategy or any type of business activity. The management can identify potential weaknesses or strengths of a business initiative and most especially, where the risks might lie.
For example, if a company intends to commence a new strategy, it should determine first if the business is financially prepared to face the potential risks that can arise from such activity. To do this, the management can prepare a budget that identifies the potential income and likely expenses during the period in question. From the information obtained from the budget, you can identify where and when financial risks might arise, and mitigate them immediately.
A financial forecast will also help on a more long-term basis. It can help predict which risks are likely to arise and the specific reasons for them to happen. Such “predictions” should be based on present and historical financial data. The management can input and update the financial forecasts with any changes that occur to completely understand the capability of the business to have enough working capital that will cover business activities in the near future.

Performance Monitoring
Financial budgets and financial forecasts are excellent tools that can be utilized by companies in the Philippines during the financial planning process. Importantly, these financial tools can also be used by businesses to measure performance and success in meeting business goals and objectives.
Budgets can be useful to help monitor and measure any differences or discrepancies between a company’s actual financial performance (income, expenses, etc) and the budgeted or estimated financial performance identified at the beginning of the budgeted period.
Simply, a budget created at the beginning of a period can be reviewed during or at the end of the period to understand if the business is actually hitting its day-to-day objectives. It can also help management to identify which expenses or cost centers need to be monitored more closely or which revenue sources must be optimized. As mentioned, the budgeting process relies on expectations and estimates identified from the information that is freely available at the beginning of the budgeting period.
Financial forecasts, however, can take new information into account when considering business performance. Forecasts will be updated, from time to time, depending on the business model, to give management a clearer understanding of the company’s financial status at any given point in time.