CPA Miami™ can help you develop professionally prepared financial forecasts and projections that can be used by management, lenders and investors.  These statements can be used internally to establish benchmarks, develop general business plans, review the forecasted effects of various business and financing alternatives, determine cash needs and availability.  These statements provide critical information to investors and third party lenders to assess expected returns, the expected timing of payback and associated risks of investment.

We utilize the most sophisticated, versatile software applications to provide a platform for report modifications in response to ever-changing economic conditions and assumptions instantly.  Once prepared, forecasts and projections can be modified and changed as needed in response to general and industry specific economic conditions, ongoing changes in sales, cost of sales and expenses with little time and expense.

What is a financial forecast or projection?

A financial forecast is normally an estimate of future financial outcomes for a company. Using historical accounting information, in addition to external market and economic indicators, a financial forecast is managements’ best guess of what will happen to a company in financial terms over a given time period — which is usually one year. A financial forecast presents the Company’s expected financial position, results of operations, and cash flows for the forecast period based on management’s assumptions, reflecting conditions expected to exist and the course of action management expects to take during the forecast period.

A financial projection not only presents the Company’s expected financial position, results of operations, and cash flows for the forecast period based on management’s assumptions, reflecting conditions expected to exist and the course of action management expects to take during the forecast period but applies procedures considered necessary by the accountants in the preparation, presentation and evaluation of assumptions used by management.

Why Use Forecasts and Projections?

Forecasts and projections are perhaps the most underutilized benefit that can by provided to small businesses by accountants.  Whereas general purpose financial statements most often used provide only a historical review of Company operations, forecasts and projections provide the insight necessary to gauge growth in comparison to predefined goals, review projected outcomes given specifically outlined business conditions, compare and contrast outcomes given specifically defined alternatives, provide critical financial information for investors, potential investors and lenders necessary to assess business plans, increases in financing and loan modifications.