How to Create a Forecast Based on Historical Xero Accounting Data
In their more reflective moments, accountants often say, perhaps ironically, that a set of accounts is not worth the paper it is written on. Surely, they are not being serious?
But think about it. Traditionally, a set of accounts is produced some months after the year end. Great for calculating the annual corporation tax bill, but not a lot of use for anything else . They very much show the “what was” position. The “what is” position is achieved by the use of bank feeds whereby Xero is updated every day by the previous day’s bank transactions. A great improvement, but it still only shows the historical data, albeit accurate up to yesterday.
So what about the third and final element, the “what shall be” position? FUTRLI’s blog on preparing a forecast shows what can be achieved.
Please let us know if you have any questions on this blog, or if we can help you in any way with your forecasting.