Spotlight Reporting - our software focus this month
Posted on 01 May 2023
If you have ever required a budget or forecast report it is highly likely we would have used Spotlight Reporting.
The ease of having data downloaded from Xero to provide this information is one leading factor of why we love this software. We take the information from Xero which allows us to see what your business will look like.
Management Reporting is one of the reasons why we would use Spotlight Reporting for you. This enables us to assist you to see what is happening in your business on a regular basis. Other reasons include:
- Forecasting for the next twelve months or into the future.
- Scenario Planning where we want to see what will happen if the business makes a certain decision on spending. For example, if you take on a new employee or supplier, or if you borrow instead of using your own capital. There are multiple ways we can assist you by using scenario planning.
We find the visual graphs are a simple way to help us relay all the important information you need.
Other reasons we would use Spotlight Reporting for you include:
- If you are looking to refinance and want to evaluate the cost of the finance. We can prepare cashflow forecasts to see what the business would look like in five years.
- If you need a twelve-month budget/forecast for the bank to retain or renew funding.
- To prepare a valuation for a business based on future earnings.
- To show you progress or improvements in your financial position, based on previous decisions you had made.
These reports assist us in improving your financial knowledge of your business, so you have the ability to make better business decisions.
CEO of Spotlight Reporting, Richard Francis emphasises the advantage of forecasting and scenario reporting on their blog.
“ To get the most out of the process, create three different scenarios for the next few months—what Richard calls “the good, the bad, and the ugly”:
- A best-case scenario. What does the future look like if everything goes according to plan?
- A second scenario that factors in the reality of the situation. What is most likely to happen if things continue to take a dive?
- Get to grips with the worst-case scenario. If you’re forced to close up shop, for whatever reason, can you pivot to online sales? Do you have enough in reserve to get your business through this period?
The aim is to prepare for various scenarios to help you plan.
As your accountant we are able to compare actuals to forecasts with you and track your progress. You are then able to effectively plan for what you need to and ensure you’re measuring what matters.
We’ve talked about forecasting a lot and know it works.
We are a team of experienced advisors and have helped many clients with their planning and forecasting requirements to meet their goals.
If you have a specific goal that you wish to achieve, speak to our team who can help you put a plan together to achieve this goal.
