Whether you are a start-up business or a multi-million dollar, third generation operation you need to plan for the future. And any planning you do will have a financial component that incorporates prospective capital and operating budgets and funding plans for two very different scenarios.

The first assumes steady state conditions for your business and the second incorporates all the “what if’s.” And because in today’s light-speed business environment nobody really gets to function without experiencing altered market conditions, preparing for change is essential, even if you aren’t planning any new initiatives.

So Financial Forecasts are fiscal statements that look a lot like your Budget Analysis. It is a document that makes financial projections based on a belief that the business will continue to function pretty much as it has over the prior reporting period. Financial Projections on the other hand, are based on untested future scenarios resulting from new business initiatives.

You may see an opportunity to open a branch office for example. Yes, that may draw new clients, but there may be leakage from your existing outlet, and the difference, or the net gain, would be incorporated into a financial projection.

This is where CDRCPA can work to help you grow your business. We can be your sounding board and develop financial models that take into account all the factors so you can make wise decisions about the future direction of your business