You tell the difference between an amateur financial forecast and a professional financial forecast by looking for one key ingredient.

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

You can tell an amateur financial forecast when the amateur only forecasts the P&L and doesn’t forecast the balance sheet. Projecting the changes in your balance sheet accounts is the only way to determine accurate cash balances. Which by the way knowing projected cash balances should be one of the main reasons you wanted a forecast in the first place. 

Remember, the most successful business owners know their numbers.

After each day most business owners ask the question, did we win or lose today?  Did we move forward or backward?  Without knowing your break-even point, you will never know at days or weeks end if you are winning or losing.

My name is Michael Barbarita from Next Step CFO with the Know Your Numbers Minute.  

Many business owners want to know their break-even point for the very reason of knowing whether they are winning or losing in a day, week or month.

Calculating break-even points is just one of many metrics I can provide the business owner to be able to evaluate the performance and productivity of their business.

And remember, the most successful business owners know their numbers.