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PROJECTIONS AND FORECASTS
Prospective financial statements are required by management for planning purposes and by credit grantors and underwriters for financing or investment decisions. Our firm has many years of experience with both kinds of prospective financial statements-projections and forecasts.
When we help you develop projected financial statements, we capture the financial position of a company given one or more hypothetical assumptions. The projected statements answer the question, "What would happen if...?"
On the other hand, forecasted financial statements present the most probable financial position of a company for a future period. "Most probable" means the forecast is based on assumptions that management believes represent the most likely set of conditions and its most likely course of action. Thus, forecasted financial statements are generally more precise than are projections.
Members of the financial community determine whether a projection or a forecast is necessary. We meet with you and your credit grantor to help make this determination. |
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BUDGETING
With the help of a skilled CPA, a budget can support long range or strategic planning; assist in the development of reliable projections and forecasts; predict periods of cash surplus or shortfall; and guide management in the most appropriate utilization of manpower, material and other resources.
We believe your budget is a vital part of this overall financial plan since it establishes your goals. A carefully prepared budget is one of your company's most important management tools. It represents your company's future.
We assist client companies in developing capital budgets for expenditures that may require special financial and operating budgets used in planning and controlling routine operations. In addition, we prepare cash budgets that guide cash receipts and disbursements.
As a part of budget monitoring, we will help you anticipate and prepare for cash shortfall, recognize expenses that are out of line and the reason, properly utilize profits, and advise on the financial implications of other developments throughout the year.
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