Modeling And Forecasting

Determine Your Financial
Expectations For The Future

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The Importance Of Outsourcing Your Modeling And Forecasting

Forecasting methods, including financial modeling, have the objective of gathering information to predict a business’s future performance. This helps company stakeholders make informed decisions regarding purchasing, hiring, capital expenditures, and budget creation. Your company’s accounting team might not have all of the experience or knowledge needed to create accurate forecasts based on realistic and accurate data, leaving you uncertain about your financial outlook going forward.

NOW CFO’s outsourced consultants have extensive knowledge of industry data – they have worked with a wide variety of companies and can bring industry context to your company’s financial information. Our outsourced consultants can objectively generate your financial models and forecasts to produce unbiased results. By extrapolating historic and present financial data, our consultants can make informed predictions regarding future earnings trends and financial health.

Forecasting Methods

  • Bottom-up forecasting
  • Top-down forecasting
  • Moving average forecast
  • Simple linear regression/multiple linear regression forecasts
  • Straight-line method forecast
  • Time series forecasts

Financial Models

  • Leveraged buyout model
  • Consolidation model
  • Discounted cash flow (DCF) model
  • IPO model
  • Option pricing models
  • M&A model

The Value Of Modeling And Forecasting

Financial modeling and forecasting are vital to a company’s financial well-being. Because these forecasts are informed guesses and assumptions, there may be risks involved in relying on the past data and methods that cannot include certain variables. However, companies must use forecasting to help them develop future business strategies and goals. Staying in front of and ahead of your goals is crucial in the business world.

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