Financial Projections and Forecasts
Financial projections and forecasts are one of the key areas of finance. Projected financial statements show an anticipated financial position, financial performance, and cash flow movements over some time in the future.
Financial projections are critical for the success of any business. If you are looking to raise finance through debt or equity, your lender or investor will require these projections.
We have identified the four most common scenarios where you need financial projections in Canada.
Financial Projections for Business Plan
The financial section is an integral part of any business plan. Financial projections contain underlying information needed to complete the financial section of a business plan. A poorly constructed financial section can result in an ineffective business plan!
Financial Projections for Bank Loans
Financial projections are essential for business loans in Canada. It is not uncommon for your banker to ask you to submit financial projections and a business plan. The objective is to see the business’s ability to pay back the loan and financing cost.
Even if your bank doesn’t want financial projections, don’t you want to see if you will be able to pay back?
Financial Projections for Startups and Investors
Startups often need to seek capital in different ways that do not involve debt. For example, investors to whom the equity stock will be issued.
These investors want to see if your business idea is worth risking their capital. They want to know when they are going to see the profits from their investment and how long they need to wait before the profits reach them in the forms of dividends.
These financial projections also play a key role in determining the pre-money or post-money valuation of your startup.
Financial Projections for Established Businesses
Financial projections are not only required for raising capital or for submitting them to external users. They play a key role in important management decision-making, including the aforementioned financing decisions. Pricing, downsizing, upsizing, mergers and acquisitions, and every other similar decision require financial projections.
That’s why financial projections are one of the main responsibilities of a CFO or a virtual CFO today.
Hastily done financial projections can make or break the chances of raising money.
How can we help?
Did your bank ask you to submit financial projections for a loan application? Are you starting a new business and want a realistic and accurate financial picture of the future? Or, did you do an excellent job of projecting your revenues and expenses but your balance sheet does not match?
Don’t worry! We are here to help you.
We prepare fully functional and detailed financial projections, whether they are needed for bank loans, investors, business plans, or management purposes.
While preparing financial projections, we build all the financial models from scratch! We don’t use any pre-made templates or computer software with preloaded information. We guarantee a client-specific financial model built in close coordination with the client.
We also take into account the sophistication of users of financial projections, specific nature of the industry and ultimate purpose.
We know what your bank or investor wants to see in your financial projections.
Being a CPA firm, we have the expertise to analyze the financial performance of a series of clients spread across multiple industries and locations in Canada. It gives us a strong edge when it comes to conducting thorough research to help ensure that the financial projections are as realistic as possible.
Our services are scalable! You can get you what you need.
We can offer you assistance with:
- Making financial projections
- Crafting a full business plan
- Preparing investor presentations
Our outcome is highly accurate. You will get amazing results with our realistic financial projections.