What is Predictive Accounting?

Most accounting programs give a narrow view of one account in detail looking at events that occured in the past. They don't give you any real picture of how things will look in the future.

you can see and compare multiple accounts and as you plan transactions you can get an overall picture of how all your accounts will stand, this month, next month, even years ahead. Look at the image of the accounts ilustrated below, and compare it with the image above. Note that not only are a number of accounts shown, but also that these are also available for both past and future months, even years.

Each time you make a transaction entry, the effect of that expense or income is cascaded to all of the following months, recurring expenses will be entered for each month that they occur and can be set to individual or common rates of inflation or other periodic changes. You then have a picture available to you that will show you exactly what your account balances are expected to be day by day for each month. Properly managed there will no longer be cases of unexpected overdrafts or any NSF cheques and the bank fees that these could incur. If you do find that an expense could lead to a negative balance all you have to do is to arrange to make a transfer from an account that has credit and cover the expense at the time it is to occur.