Mikhliev K.O. Plan - Forecasting elements of financial statements and description of various models and methods used in it.
- Forecasting assets, equity and liabilities.
- Forecasting income and expenses.
- Prediction of cash flow.
What Is Financial Forecasting? Financial forecasting is creating an educated prediction of future business performance over a set period. It helps business leaders create budgets, plan resources, anticipate risks, improve profitability, and manage growth. While it is impossible to make such a prediction with 100% accuracy, there are several ways to ensure that a financial forecast is reasonable and on track. Financial forecasting can be carried out through the three main tools:
income statement
balance sheet
cash flow statement
- An income statement depicts how much money comes into and leaves the business
- Pro forma balance sheets are used to show assets, liabilities, and equity. They are created by using data from other documents or accounting reports. Using more accurate data will result in more accurate financial forecasting
- A cash flow statement displays the amount of cash generated and spent during a particular period
How to Forecast a Balance Sheet?
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