Accountants play a pivotal role in business planning and forecasting. In this article, we look at five best practice tips gathered from industry insights to help keep forecasting proactive, strategic, and impactful all year.

1. The power of regular reviews

The past few years have shown us how quickly circumstances can change. A study by ACCA and KPMG found that 70% of finance professionals believe agile planning improves a company's resilience by enabling faster adjustments to unexpected events.

Businesses that embraced regular forecasting stayed afloat during turbulent times and gained sharper insights and better control of their finances.  

Best practice: Make quarterly reviews part of the routine. These aren't just check-ins. They're opportunities to adapt, realign, and stay in control of a business's financial future. We recommend planning ahead and boxing off time in your calendar to perform these.

2. Keeping forecasts aligned with strategy  

We know cash flow forecasting goes beyond tracking numbers; it’s a tool to keep business goals front and centre. Many organisations start the year with purpose-driven budgets, but it’s easy to lose sight of those priorities over time.  

Deloitte reports that 61% of successful businesses use forecasting continuously to realign with their strategic goals. Making this a quarterly practice keeps the process grounded and relevant, helping to identify areas that need reallocation or rethinking.  

Best practice: To help guide these conversations, here's a checklist of questions you can ask during each quarterly review:  

• Are the current business goals still relevant?  
• What are the key priorities for the next quarter?  
• How does the current financial position support these goals?  
• Are there areas where resources can be reallocated to align more with strategic priorities?  
• What obstacles or risks do we foresee?  
• What new insights have been gained that could refine the strategy?  
  

To keep the forecast realistic and actionable, you should incorporate any new trends, customer feedback, or operational data.  

3. Cash flow, not just profitability

While profitability often gets the spotlight, cash flow is just as critical. Sadie Channing, Director at Menzies LLP, emphasizes that profit doesn't equal cash, and neglecting cash flow forecasting can leave businesses blindsided by unexpected expenses.

"Businesses are quite good at thinking, 'OK, what do we think our profitability will be next year or the year after?'. And that's all well and good. But how does that turn into cash? Profit doesn't equal cash, in fact, far from it a lot of the time."

Incorporating scenario planning into your reviews can further preparedness. ACCA's research shows that 53% of finance leaders consider scenario planning essential for managing risks. Testing your forecasts against potential challenges, such as increased costs or a drop in revenue, ensures you're ready to navigate any surprises.

Best practice: Include best and worst-case scenarios in your forecasts. This approach makes it easier to manage risk, plan for growth, and identify strategies for unforeseen financial pressures.

‍4. The role of visual tools

Numbers in your plans are essential, but spreadsheets alone can be overwhelming and often cause the dreaded “glazed-over look" from clients or non-financial stakeholders.

Alicia Williams, Director at SHORTS, highlights how visual tools make forecasting accessible, especially for business owners who might not be finance experts; helping them to understand trends, compare scenarios, and understand cash flow health at a glance.

"Many businesses we work with are amazing at what they do, but they're not accountants. Numbers don't mean a great deal to them, and they don't have hours to spend trying to figure them out. Having visuals is vital because it helps them quickly spot trends—if something looks fine in a spreadsheet but you see a downward trend on a graph, you instantly know something needs attention."

Best practice: Investing in tools that offer visual insights can make financial discussions straightforward, collaborative, and actionable.

5. From risk to opportunity

Quarterly forecasting isn't just about preparing for risks and recognising potential growth. For many business owners, regular cash flow tracking opens strategic possibilities, from hiring staff to pursuing ambitious projects. Knowing your forecast isn't limited to static projections, can empower stakeholders to take calculated risks confidently, from expanding teams or investing in new tools.

Deloitte's findings show that organisations using rolling forecasts are 75% more likely to identify growth opportunities than those using static, year-end budgets. In this way, regular forecasting becomes a tool for resilience and innovation.

Best practice: Use quarterly reviews to assess new opportunities as they arise. With consistent insights into cash flow, businesses can confidently pursue growth, knowing they have the financial stability to support it.

Forecasting as a year-round tool

Successful businesses treat forecasting as a dynamic, ongoing process. Instead of letting plans fade after the rush of annual planning, commit to regular reviews to stay agile, aligned, and ready for growth. By approaching forecasting as a year-round practice, businesses can be prepared to navigate challenges, seize opportunities, and support long-term goals at every stage of the year.

If you're looking for a tool that simplifies this process, Fathom offers features that make forecasting and scenario planning accessible, collaborative, and visually engaging. Whether stress-testing scenarios, realigning budgets, or exploring new growth opportunities, Fathom helps you keep financial plans actionable and aligned with financial goals.

Because a great forecast isn't just for December, it's a roadmap to year-long success.

Sources:

Planning, budgeting and forecasting: an eye on the future (A KPMG and ACCA thought leadership report)

Deloitte Global planning, budgeting and forecasting insights report – edition three