A financial forecast and/or liquidity forecast is important not only when starting a business or in the situation where there is growth and/or expansion. Even in case you think your business is in a stable situation, unforeseen circumstances may cause the reality to be different. Only if you can lay down the actual figures next to a pre-prepared forecast and compare them with each other can you easily analyze deviations and determine whether adjustments in business operations and/or financing structure are necessary.
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