Projected balance sheet is your insight to the future

The Predictive Accounting Process concludes with the “Projected Balance Sheet”. This process is normally prepared for a number of years in advance.

This process enables a “picture to emerge” of what your business will look like at a future date.

There are a lot of variables involved in analysing the future financial performance of a business, including estimates and estimates. It is very reassuring for a business operator to be able to sit down and to analyse the projected balance sheet, which will highlight what the end result will look like if you are able to implement the strategies outlined in the budget estimates.

The “Projected Balance Sheet” is the projected financial result of the “scaling up process” over a number of years. What is the forecast end result? Are you happy with that result or would you like to make some changes? Which, of course, you can do so.

• Expenditure on buildings and plant and equipment

• Research and Development

• Training program for your team

• Higher number of team members

• You probably will not know all of their names

• Applying for government grants (you might not always be successful)

• Applying for patents

• Ever-increasing amounts owed by debtors

• Higher inventory levels

• Borrowing of additional funds

• Possibly issue of additional shares in the company, meaning additional shareholders

• Expectation that the business’ profitability will increase

The projected balance sheet will show you what the effect of all these events are in 5 years’ time or later, so that you can decide whether it’s all going to be worthwhile and whether you want to continue down that path.

This is the real benefit of the “Projected Balance Sheets” within the Predictive Accounting Process.

Want to know more about this important information that a growing number of business operators are seeking – what will my business look like in the future?

Towers Business Development can assist you with any aspect of the “budget strategy”, including Projected Balance Sheets. To find out more, call us on 1800 232 088 or send us an email at .