Now more than ever, Australian businesses need to have strong, accurate forecasting and budgeting.

Banks and lenders have stricter expectations and covenants to comply with, and recent events have exposed how businesses need the best possible information available to make informed decisions.

Private business owners therefore need to think critically about finance in their business. 

With so many moving parts, building a robust three-way forecasting model is a critical part of the financial governance of a business. 

This is often why the three-way forecast model is so impactful. A three-way forecast is a forward-looking tool that allows businesses to manage cash flows, capital deployment, profitability, and strategic decision making. But what makes an impactful and more meaningful forecast starts with thinking about the end user.

In this series, we look at the different perspectives of those who are most affected by forecasting and budgeting.  Learn from lenders, business owners, and investors who use forecasting and budgeting for different purposes and understand how to use these tools effectively for business decisions.

The lender's perspective

Grant Thornton Partner, Nick Love recently interviewed Mark Nicholas, Founder and CEO of Anchor Private Financial Services about forecasting and budgeting for businesses, focussing on the lender's perspective on three-way forecasting.

According to Mark, having a personal and face-to-face relationship with the bank is critical for private businesses, as it helps communicate their story, seek out the best fit for their needs and avoid potential stress.

The business owner's perspective

In this episode, Grant Thornton Partner’s Nick Love and Hugh Perks discuss the business owner’s perspective of a three-way forecast model.

Hugh outlines the key benefits to business owner’s including real time visibility of expected financial performance, ongoing risk mitigation and opportunity identifications. With this information organisations can model various best- and worst-case scenarios, resource allocation, and identify funding opportunities.

We're here to help

Implementing a three-way forecast can be daunting for businesses. The process requires a deep understanding of the business’s finances, a consistent process for collecting data and making updates, and regular communication of updates to stakeholders.

Grant Thornton has the expertise to help businesses prepare financial forecasts and budgeting to meet their needs. Businesses should seek out external advice from accountants and advisors, take a considered approach to their forward projections, and be prepared to support their assumptions.


Nick Love

Nick is a Chartered Accountant with over 12 years' professional experience providing advisory, tax, and accounting advice to business owners and leaders, family groups, and high net wealth individuals.

Hugh Perks

Hugh has over 15 years’ experience providing accounting, taxation and business advisory services across a diverse set of clients.

Jace Gawne-Buckland
National Head of Technology, Media & Telecommunications

Jace is a Chartered Accountant with 18 years’ experience in Professional Services. Jace specialises in assisting privately owned businesses, their owners and high net wealth families/individuals with their accounting tax and advisory needs.

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