Forecasts & Projections
We help clients take their future into account by providing forecast and projection services. We focus on the details and format/template design to provide forecasts that are effective and useful forward looking management tools. We believe no business or organization should operate without a budget – it provides the foundation for management decisions regarding cash flow, equipment, and personnel needs and is essential to safeguarding assets and internal accounting controls.
Besides forecasting and planning expected operations, projections can be useful in evaluating, analyzing, and communicating important business decisions including:
- Equipment purchases and facility
- Relocations and building purchases
- Mergers and acquisitions
- Consolidations of operating facilities
- Financing alternatives
- Raising capital and informing investors
- Determining cash flow requirements
- Minimization of income taxes
The objective of developing prospective financial information is not to predict the future, but to provide information to improve the decision-making process.
We provide various levels of service:
- Examination engagements require that we evaluate the underlying assumptions and the presentation of the prospective financial statements for conformity with AICPA presentation guidelines and issue an examination report. The examination report expresses a positive opinion on whether the assumptions provide a reasonable basis for the forecast and whether the forecasted financial statements conform to AICPA presentation guidelines.
- Compilation engagements require us to assemble the prospective financial statements to the extent necessary, and to read them for conformity with AICPA presentation guidelines, and to issue a compilation report. A compilation report disclaims an opinion or any assurance on the prospective financial statements and their assumptions.
- Assembly engagements do not provide any type of assurance. We perform mathematical calculations to convert your assumptions into a forecast. We may or may not issue a report.