Truth 48. The nitty-gritty: Forecasts, budgets, and financial statements
To assess whether its financial objectives are being met, businesses rely heavily on the preparation and the ongoing analysis of forecasts, budgets, and financial statements. In addition, it’s necessary for business owners to learn basic bookkeeping, to keep their records straight for tax and other reporting purposes.
Forecasts
A forecast is an estimate of a business’s future income and expenses. It’s the first step in completing a budget and a set of projected (or pro-forma) financial statements. A business that is already up and running bases its forecasts on its past performance, its current circumstances, and its future plans. So a business that grossed ...
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