Financial forecasting is a process by which a company plans and prepares for the future. It involves determining the expectations of future results. Financial modelling is used to estimate the valuation of a business or to compare businesses to their peers in the industry.
Post the detailed discussion the report will be submitted in 5days. The pros and cons of the report will be analysed by an expert in Financial statements. A call will be scheduled post the report virtually or in person.
Financial modelling is used in strategic planning to test various scenarios, calculate the cost of new projects, decide on budgets, and allocate corporate resources. It is the act of taking a forecast’s assumptions and calculating the numbers using a company’s financial statements.
It is useful for the following reasons:
The main sections to include in a financial model and valuation are: