Standard Financial Projections

I believe these three things about startup entrepreneurs, business owners and financials:

  1. The essential need-to-know facts about financials are very important;Financial Forecasts
  2. They are easy enough to learn; and
  3. Bankers, accountants, investors and their analysts expect you to know them and use them correctly.

The sales forecasts, spending budgets, and cash flow in your lean plan are sufficient for running your business well. Use them for monthly review and revisions and keep them up to date.

However, there are many sound business reasons for developing and managing complete formal financial projections that comply with accepted financial practices.

There are three standard financial projections: the Projected Income (also called Projected Profit and Loss), Projected Balance, and Projected Cash Flow. This section gives you what you need to know about financials. So it includes:

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