A healthy profit is encouraging, but it doesn’t necessarily mean your business has enough cash available to pay wages and suppliers or fund its next stage of growth.

A standard profit and loss statement shows only part of that picture. Three-way forecasting closes this information gap by showing how your plans and different scenarios could affect profit, cash flow and your overall financial position.

Most business owners already have an accountant. They have financial statements prepared, tax obligations managed and bookkeeping completed. Those things are essential — but as a business grows, they don’t always provide all the information you need to make day-to-day decisions. At some point, the questions start to change.