Our financial forecasting service aims to assist management in formally presenting the future financial results of its operational plans. Before financial forecasts can be developed a budget must be developed and then turned into a financial model. The assumptions in the budget can then be turned into equations and extrapolated into the future.
Build Credibility with Financial Forecasting
Unlike financial projections, which provide a “what-if” scenario analysis, financial forecasts attempt to provide the most likely scenario of what is going to transpire in the future. For that reason, lenders and investors will put more weight on financial forecasts that rely substantially on past performance. Management’s assumptions and expectations are still incorporated in the plans, but to every extent possible we build models based on statistical analysis of past performance.
Our many years of experience developing and presenting these types of reports can also provide invaluable insight into disparities that can make a forecast appear unattainable to sophisticated lenders and investors.
Make an Impression with Financial Forecasting
A forecast is often prepared for third-party use and the quality of the presentation is critical to installing confidence in potential investors and creditors. Financial forecast engagements can be structured in a variety of shapes and sizes, but in all cases a CPA is required to include a summary of significant assumptions. These disclosures provide a narrative description of how each item on the forecast was computed. Typically the CPA is also required to make disclosures of significant accounting policies. The form and content of these disclosures is specified in the AICPA’s Statements on Standards for Attestation Engagements and tend to instill a degree of confidence not typically obtained when internally developed forecasts presented.
We can help you:
- Assist with costing, trend analysis and budgeting
- Preparation of financial forecasts
- Preparation of supporting disclosures
- Creditor and investor presentations
Call us today to find out how financial forecasting can help your business.
Financial forecasting is more of an art than it is a science. Podraza CPA's many years of experience developing and presenting these reports can provide invaluable insight into disparities that can impair the credibility of forecasts presented to sophisticated lenders and investors.