Financial forecasting and professional age analysis is vital planning tool that helps organisation in its attempts to cope with the uncertainty of the future, it relying mainly on data from the past and present and analysis of trends. Professional forecasting planning guides the organisation to prepare for future economic conditions. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. This is typically based on demand for the goods and services it offers, compared to the cost of producing them. Investors utilize forecasting to determine if events affecting a company, such as sales expectations, will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for firms which have a long-term perspective of operations. Forecasting starts with certain assumptions based on the management’s experience, knowledge and judgment.
Prodigal Sid offers Financial Health check, Professional Age Analysis and Credit Reviews for companies to control their finances to improve the growth of the business.
Financial Health Check
Finance Health Check is a methodology designed to help organisations measure the performance of their finance functions, and identify areas for improvement. The key aims of financial health check are to minimise the effort utilised on mandatory activities such as transaction processing and maximise the effort applied to value adding activities such as the production and analysis of management information and decision support.
Professional Age Analysis
Aging analysis is the analysis which is used to calculate the average number of days taken by the company to collect payments from the customers. It is a vital tool to find out liquidity. According to the liquidity performance the company will take further actions for performing better. Accounts receivable aging is a critical management tool as well as an analytic tool that helps determine the financial health of a company’s customers, and therefore the health of their business.
Prodigal Sid conducts age analysis for our clients which help them to take decisions to avoid financial risk. Our conduct analysis develops understanding for the company that if an accounts receivable aging demonstrates that a company’s receivables are being collected much slower than normal, this is a warning sign that business may be slowing down or that the company is taking greater credit risk. Also if accounts receivable aging may indicate that certain customers are not good credit risks. It can therefore help a company make prudent decisions about whether or not to keep doing business with customers that are chronically late payers.
Prodigal Sid conducts credit review for our clients to assets the financial risk taken by the company. A credit review refers to the periodic reviews conducted by creditors on their customers with outstanding loans or credit lines. It can also refer to the service provided by credit repair firms as a preliminary step in assisting those with financing or debt problems. It is an assessment of a individual or company’s credit profile conducted periodically by a creditor that has extended the credit. The decision to continue the extension of credit or offer additional credit is based on the creditor’s findings from the credit review.
The deliverables from Prodigal Sid are:
- Project initiation document.
- Current operating model report
- Recommendations report
- A plan to deliver the recommendations.