Clearly a good knowledge of spreadsheets is required alongside a thorough understanding or accounting to create a working set of projections.
This is because any change to say, sales levels needs to impact on profitability, debtor levels and also cash collection, which in turn affects the projected bank balance. All of this needs to occur whilst maintaining a balanced balance sheet!
What is the next step for preparing financial projections?
The obvious port of call for this is your accountant or business advisor who should have access to the necessary skill base from within the firm.
That said, many of the assumptions and drivers for the numbers will have to come from you, the business owner and incorporated into the model by your advisor.
To prepare for your business projections, you can download our free financial projections template to get you started.
If you still feel unsure on business projections, download our free guide or speak to our expert today!