What you'll learn:
- Define the concept of financial forecasting and explain its importance in financial planning.
- Apply forecasting techniques to make accurate projections of future financial performance.
- Analyze past financial statements to identify relevant data for forecasting and budgeting purposes.
- Utilize Microsoft Excel to create and manipulate financial models for forecasting and budgeting.
- Construct sales projections as a foundation for other budgeting components.
- Develop a production plan based on sales projections to optimize resource allocation.
- Prepare a capital budget by evaluating investment opportunities and estimating future cash flows.
- Create a cash budget to ensure adequate cash flow management and liquidity.
- Construct a budgeted income statement to assess projected financial performance.
- Develop a projected balance sheet to evaluate the expected financial position at the end of the budgeted period.
In this comprehensive course, we will delve into the fundamental concepts of forecasting and budgeting from a finance perspective, equipping you with the skills to make informed financial decisions based on future projections.
Throughout the course, we will provide numerous example problems, including both presentation-based scenarios and hands-on exercises using Microsoft Excel worksheets. Each Excel worksheet problem will be accompanied by a downloadable worksheet with step-by-step instructional videos. The worksheets will include at least two tabs—one with the answer and the other preformatted to facilitate a structured, interactive learning experience.
To effectively forecast and budget, we begin by using past financial statements as a starting point. These statements, including the balance sheet, income statement, and statement of cash flows, provide valuable insights into historical performance. From there, we consider various changes and factors that may impact the future, such as planned initiatives and shifts in the economy and business environment.
In constructing our budgets, we follow a systematic order, starting with sales projections as the foundation for other projections. We then progress to the production plan, capital budget, cash budget, and budgeted income statement. The budgeted income statement serves as our primary performance statement, guiding financial decision-making.
Moreover, we explore the process of creating a projected balance sheet—a statement that represents our expected financial position at the end of the budgeted time frame. By integrating projected income statements and beginning balance sheets, we can gain a comprehensive understanding of future financial expectations.
Join us on this dynamic journey to master forecasting and budgeting in finance. Enroll today to develop practical skills in financial planning, learn effective forecasting techniques, and gain proficiency in budgeting strategies. By the end of the course, you will be equipped to make informed financial decisions based on sound projections and navigate the future with confidence.
