accounting for SMBs

What are Projected Financial Statements & Why You Need Them?

Jun 2019Jan 2021

It’s easy to get caught up in a good business idea and want to dive in head-first, but any businessman worth their salt knows that you can’t just leap into an entrepreneurial venture without a plan. Projected financial statements are your friend when it comes to building out a future for your business, and a monthly accounting arrangement with a trained CPA will bring much-needed expertise to your venture.

What is a Projected Financial Statement?

A projected financial statement is just what it sounds like: an analysis of a company’s decisions and implementations that will offer a realistic picture of what results a strategic plan will have. A full-service accountant can prepare a projected financial statement by examining a combination of the company’s own history and current trends throughout the industry and the broader economy to evaluate the success of proposed initiatives.

So What’s The Big Deal?

Preparing a projected financial statement can be a big lift, which is why it’s important to get an expert in the field to help you. Keep in mind that projected financial statements are living documents and may change significantly over time, which is why it’s important to review your numbers with monthly accounting-especially for SMBs.

A well-researched projected financial statement demonstrates the reliability of your business venture, and reliable business owners have an easier time negotiating to fund with both banks and investors to get a better deal.

Why Regular Accounting is Important for SMBs?

Putting together a projected financial statement is invaluable as you develop a strategic plan for your business, and it pays to have an expert help you. Years of experience that can help you project far into the future is just one of the benefits of full-service accounting for SMBs. You need to understand how much money your business will actually need to operate and grow, and where you are most likely to get that money from.

It may be somewhat corny, but when it comes to projected financial statements, the real financial planning is the data analysis you generate along the way. Putting together a projected financial statement will give you a leg up with lenders and start a new strategic business plan outright.

To manage your business profitably, you need the right financial data, advice, and services. Complete Small Business Solutions offers you with the accounting, bookkeeping, tax, business consultation, payroll and other business services you need most. Contact us today to fix an online appointment for a free discussion on accounting and tax strategies.

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