How to Forecast for the Financial Year Ahead

Wrights CA • July 16, 2017

Firstly, plan for how much profit you want to make next financial year.

Your forecasted profit may be based on previous year's performance or you may want to choose a magic number to work towards.

Our top three tips for coming up with the magic number are as follows:

Be realistic (this is where you may want to reference historical figures, market factors, competitive forces, economic drivers etc.)
Once you know that number, create a month-by-month forecast which will outline how you will achieve that figure.
Account for peaks and troughs in your sales. No point in forecasting figures that you can't achieve in periods which your customers just won't buy. However, you may need to aim for more profit in your predicted peak months.
Be sure to measure your forecast to actuals every month to see where you can optimise.

And remember, just getting a wage out of your business is not profit. A wage is a return for your effort. Profit in your business is a return or the risk of being in business.

If your business is at a stage where you need some strategic business advice to plan for profit, please give Anthony, Chris or Doug a call on 6566 2200.

< Older Post

Newer Post >

Employees vs Contractors: What’s the Real Difference for Your Business?

November 13, 2025

Getting the “employee vs contractor” call wrong can be expensive. It affects how you pay people, what taxes and super you owe, your workers comp and payroll tax, and your risk if the ATO or Fair Work take a closer look. Here’s a practical guide to the key differences, the hidden traps, and how a diligent accountant helps you stay on the right side of the rules.