Forecasting Software for Accountants

The Benefits of Forecasting Software for Accountants

CPAs today are in an evolving field that looks far different than it did 20 years ago. Sought-after CPAs are responding to clients’ need for a qualified financial advisor who can help their business adapt, grow, and thrive. More than 60 percent of accountants surveyed recently offered advisory services, and 25 percent provided cash flow analysis for clients. 

Clients want more from their CPAs, and expert accountants are answering the call. With the help of the right technology and software, CPAs can give businesses incredible advice to help them succeed. Forecasting software for accountants is one tool that provides immense value. Great forecasting software can help make the difference between CPAs who react to data in spreadsheets and CPAs who are proactive financial advisors. Here is how forecasting software for accountants can make a difference for CPA firms.

Forecast More Efficiently

Forecasting is nothing new for accountants. Their ability to forecast cash flow, growth, revenue, expenses, and other aspects of a client’s business is part of what makes them so valuable. 

While the expertise is old hat for CPAs, new tools enable them to deliver a better product more efficiently. Spreadsheets provide a wealth of information for CPAs to work with as they develop a financial forecast. But while spreadsheets have their place, there are far more advanced options available today that can make life easier for CPAs and create a better product for clients. 

Accurate forecasting means new information must be taken into account constantly. With the right forecasting software, new data can be pulled in with an automated process that eliminates the manual inputting of yesterday. Recalculating forecasts with new information takes dramatically less time with automated software and allows for more reliable results. Forecasts can also easily be digitally shared online with clients, saving time and effort on both ends. 

Provide Valuable Advice

Quality forecasts give accountants an opportunity to give clients valuable advice to improve their business. Businesses that have access to accurate forecasting are able to capitalize on opportunities that come their way. Whether the financial forecast is for one year or five, companies can turn to their trusted CPAs to properly manage the growth and positive revenue that should be coming their way. Perhaps paying off debts is the best way to utilize increased revenue. Working to expand the business, improve employee benefits, or save for a rainy day are options that could be explored as well. 

If the forecast does not have such a positive outlook, CPAs can give crucial instructions to improve finances and avoid pitfalls. Cutting back in some areas, improving efficiency within the company, or restructuring may be necessary to change the business’s short- and long-term outlook. 

The COVID-19 pandemic has shown just how much outside forces can impact a business and change its financial forecast. When adjustments need to be made to account for such major events, having automated forecasting software allows CPAs to make necessary alterations and continue to give businesses advice that will help them weather the storm. Wise financial advisors can not only create forecasts but also give sound direction that will bolster the company’s finances for years to come.

Compare Real and Planned Results

Forecasting software is a valuable tool for projecting a company’s future based on real data. As the company grows and progresses, accountants can use these projections to show a client how well goals and ambitions have been achieved. Continual, up-to-date information can be used to compare the projections to actual results. Forecasting software allows CPAs to gather data from all aspects of a client’s business and analyze it as a whole. Data that could be lost in the mountains of information is utilized more effectively.

Of course, it is always good when a company outdoes itself and beats projections, but that won’t always be the case. When business isn’t quite as good as hoped, forecasting software can help CPAs keep an eye out for problems. Real-time data, when compared to the projections in the financial forecast, can help CPAs spot areas where the business’ revenue or other criteria have not met expectations and address problem areas. With automation, companies can work with up-to-date forecasts that work with continuous data rather than relying on static forecasts that may be less accurate over time.

Choosing the right forecasting software for accountants can make the forecasting process easier, more efficient, and more accurate. With the right technology in hand, CPAs help their clients see the big picture and make sound financial decisions.