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Grow profits with predictive financial KPIs


Every entrepreneur understands the impact of sales seasonality, which can be predicted or unexpected. Forecasting sales and spending is crucial as they directly affect the bottom line. This blog offers valuable insights on how your company can use predictive sales, expense structure, and cash KPIs to its advantage. By understanding and using these predictive financial KPIs, you can guide your business toward profit growth with confidence and control.  If your company regularly monitors and analyzes financial indicators, you can make necessary changes in time to smooth out seasonal fluctuations, such as those caused by summer. A successful summer sale can compensate for a quieter spring, autumn, and winter. It can improve cash flow and provide flexibility for the rest of the year.

Why to use predictive KPIs?

You can better analyze your financial performance and predict business changes quicker by comparing a single financial KPI to another, such as sales, forecast, or the corresponding time of the last year.


Utilize riskrate automation to efficiently track and analyze your predictive metrics.

Compare sales to last year to get an overview of seasonal sales.

By comparing, for example, June's sales with previous years' June sales, you can quickly get an overview of where this summer's sales will settle.  If you have made a budget or use riskrate's automatic forecast, you can make faster decisions regarding material procurement and ensure the target is met.

Track spending to get confidence in cash flow.

Cash flow management is crucial, especially if summer sales are slower than other months. Consequently, salaries increase proportionally to revenue, leading to a smaller cash flow. In a service business, having a fixed cost structure means that profitability increases as sales rise while costs remain constant. In a manufacturing company, the inventory change compared to the previous year's corresponding time is a strong indicator of cash flow. If you've created a budget with a financial expert from an accounting company or used an automated forecast, you can predict the full-year result.

Boost sales with campaigns.

Regularly monitoring and analyzing economic indicators allows for timely adjustments to smooth out seasonal fluctuations. Pricing is a highly effective method for controlling customer demand. Proper pricing helps mitigate seasonal fluctuations and reduce expensive inventory. However, it's crucial to consider the impact of discounts on sales margins, as price reductions can affect profitability.
To attract more customers, you can offer campaign discounts during quiet times. During the high season, services and products can be priced slightly higher.


Spending and cash flow go hand in hand.

Fixed costs directly impact cash flow and must be paid regardless of sales. Therefore, it is important to clearly understand spending and the direction it is heading in.

Tracking spending with riskrate automation is effortless. You can quickly know the spending and get a forecast for all critical areas, such as personnel, production, marketing, and other expenses. 


The company's business model affects costs. Tracking inventory and cash flow is essential for businesses that sell physical products, while salary changes are critical for service businesses. Companies can react to higher spending by negotiating better purchase prices, improving production processes, or reducing unnecessary expenses. Understanding seasonal industry changes is also important.


Financial professionals' advisory, financial analysis, and forecasting ensure growth and profitability in all situations. If you want to know more about our services, our team is ready to help. Click on this link to book a meeting. We look forward to speaking with you soon. Thank you.








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