Financial forecasting provides the base estimates of a company’s performance during a given accounting period, modeling allows analysts to use those forecasts to assess how various potential scenarios might impact near- and long-term performance. Financial modeling tools let analysts manipulate their forecasts as much as they choose to assess the risk of whatever decisions or investments they are considering.
Financial forecasts are based on income statements, balance sheets and cash flow statements. The finance department can link these three reports to create what is known as a three-statement model.
Some principal uses of financial modeling in a business setting include:
- Evaluating capital, equity, and debt
- Making asset or business acquisitions
- Understanding organic growth and development
- Creating financial forecasts
- Balance Sheet
- Company Valuation
- Presenting data with charts and graphs
Our potential team will create financial forecasts to project revenue and expenses, which will help you to estimate your business cash position at a certain period in the future.