Having a dynamic, regularly updated sales forecast can be essential to the success of a small business. By forecasting your sales revenue you are helping to control for its unpredictability, an inherent risk in any business venture, and prepare for the decisions that are essential to your business profitability. Whether your sales are increasing, decreasing or static , it is always better when decisions are made proactively rather than reactively.
Preparing a sales forecast can be as simple as you want it to be and does not necessarily require an accounting degree, particularly when your business is small (although an experienced accountant can certainly help refine and streamline the process). Below are some tips to help you prepare your sales forecast: