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.