Why looking backward is killing your profit (and what to do instead)

Most agency owners spend 80% of their time looking backward at financial reports and 20% looking forward at financial opportunities.

The most successful ones do exactly the opposite.

Why? 

Because by the time you’re looking at last month’s numbers, it’s already too late to do anything about them.

You review your P&L, see that profit dropped, and start scrambling to make adjustments. But the month is over, the decisions are made, and the opportunities are gone.

You’re playing defense when you should be playing offense.

This is where most agencies get trapped in the cycle of open book reporting instead of true open book management.

What’s the difference?

• Reporting tells you what happened
• Management helps you control what will happen

Enter Forward Forecasting – the secret sauce of our process at Open Book CFO.

Instead of waiting until month-end to discover surprises, forward forecasting lets you:

• Project your full financial picture week by week
• Spot potential issues while there’s still time to fix them
• Protect your critical numbers (profit, cash flow) by adjusting in real-time

Here’s what this looks like in practice:

Imagine it’s mid-October, and your weekly forecast shows revenue dropping $10,000 below target. With traditional reporting, you’d discover this shortfall in November – too late to do anything about it.

But with forward forecasting, you still have time to:

• Adjust other line items to protect profit
• Pull different financial levers
• Rally your team around specific actions
• Hit your monthly targets despite the revenue drop

It’s the difference between reacting to problems and preventing them.

The best part? This isn’t just about avoiding disasters. 

Forward forecasting gives your entire team the power to make better decisions every day, because they can see how those decisions will impact your financial future.

At Open Book CFO, we specialize in:

• Building custom forward forecasting systems for agencies
• Training your team to use financial data proactively
• Creating scoreboards that drive real-time decision making
• Transforming financial management from reactive to predictive

Ready to stop playing catch-up with your numbers?

Let’s talk about what forward forecasting could look like in your agency. 

Book a free 30-minute strategy call today.

And keep tuning into The Winning Agency for more tips on building a financially healthy business.