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Forecasts and Projections

Why You Need a Forecast or Projection

Many business owners attempt to build a business without a financial forecast because they trust their instincts. This may provide short-term success, but can result in long-term failure. Often a company has financial problems long before the owner or management realizes the extent of the trouble, at which point it's usually too late to turn the company around.

Although financial forecasts do not guarantee success, a forecast does signal the need for immediate attention.  Responding to problems quickly increases the business' chances for long-term success.

Questions often arise about a company's financial operations at a point in the future. Often company management requires this information for future planning and development, to determine the best possible choice for several options such as leasing or purchasing an asset, or to give several scenarios when examining a proposed service or offering. A forecast or projection is a valuable tool when planning for the future.

A projection is different from a forecast. A financial projection, unlike a forecast, is prepared using at least one hypothetical assumption. Generally, financial projections should be prepared for start-up businesses as well as existing businesses that are contemplating a major investment, such as the acquisition of another company, the development of a new product line, a major equipment purchase, or some other significant capital expenditure.

Financial projections enable management to make smart business decisions before expending company resources or incurring debt. Given certain assumptions, management can assess the risk of debt payback for a significant capital expenditure. For example, assume a business is considering an acquisition and the financial projection indicates the debt payment will be tight. With this information, the owners can renegotiate the purchase price, renegotiate the payment terms, or reconsider the purchase altogether.

How we can help

Curtis Blakely & Co., P.C., CPAs will tailor a forecast or projection specifically for your company. These reports can be as simple as annualizing existing data to projecting multiple future outlays for projects, employee staffing and raises, increases in costs, or a variety of options.


Our fees for a forecast or projection tailored specifically for your organization are competitively priced.

For more information, please email or call our office at 903-758-0734.