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Financial Projections and Forecasts

No one can predict the future perfectly, but we can all benefit from planning for it. Business entities need to plan for the future; they must also consider alternative management strategies and prepare capital and operating budgets; they must also consider alternative funding and cash budget possibilities. An important part of the planning process is the preparation of prospective financial statements that attempt to predict the outcome of the business entity’s activities in future periods.

Financial forecasts and financial projections are prospective financial statements that present an entity’s expected financial position, results of operations, and cash flows in future periods under two different conditions. Financial forecasts assume that the entity will continue to function in the manner in which it is currently functioning. The financial forecast presents the predicted results for the next year. Financial projections, on the other hand, make one or more hypothetical assumptions about an entity’s future course of action. A financial projection would provide expected results. Financial forecasts and projections should be distinguished from pro forma financial statements, which show the effect of a hypothetical future event on the historical financial statements results.

Iyer Associates combines expertise and experience to produce financial projections that can help you manage your business plan and spending. Forecasting for the future is imperative to your company’s success. We make it a point to keep current with market trends and updates so that your business can be prepared for what is to come. Depending on your needs, our work can range from top-level reports to detailed financial models.