Haven't found the Essay You Want?
For Only $12.90/page

Financial Forecasting CheckPoint Essay

The reason type of companies such as brand new companies, family-owned companies, and long-standing companies would need a financial forecast is to develop projected financial statements; a series of pro forma. The information developed by a series of pro forma provide a sort of estimate on inventory, payables, receivables as well as what would be required for profit and borrowing. A projected financial statement provides a kind of advantage in any of the companies listed above as it gives the firm an insight on operations. A pro forma would help guide companies in deciding how to best operate and succeed. When starting a brand new company a financial forecast is essential.

A financial forecast would help a brand new company decide on how much inventory would be needed, cost of start up and production, and how much capital is needed. Obtaining a financial forecast would also help guide a brand new company on how much profit the company can make, whether a bank loan would be needed to start up and how many individuals can be hired. Family-owned companies need financial forecast just as much as a brand new company.

A family-owned company would need a financial forecast for obtaining information from the simplest of things like how much inventory is in stock, profit sharing, expected expenses and profit for the future. A family-owned company would need a financial forecast to also make good decisions on continuing a successful business, which department needs revamped or tweaked. It is essential for a family-owned company to obtain a financial forecast to also estimate whether sales income would be enough to cover expenses and whether cutbacks need to be made.

Essay Topics:

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email. Please, specify your valid email address

We can't stand spam as much as you do No, thanks. I prefer suffering on my own