week3 checkpoint - smaller scale internal family...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
There are some many reasons companies will need to have prepared or prepare financial forecasts. The reasons can be intricate parts of plans for starting or expanding of a company. Gathering of financial statistics in these financial forecasts is often times used in the company’s portfolio in applying or inquiring about lending from banks. When planning to obtain financing for their company, accountants and company personnel will need to analyze and audit future financial statistics and therefore requiring sometimes extensive financial forecasts. A new company will examine their future budgets, assets and liabilities among many other pertinent statistics. The information is used in decisions and planning the operation of the company. Upon reference to the forecasts planning can be properly budgeted and developed. When a family owned company faces the situation of preparing financial forecasts or obtaining the forecasts from qualified auditing and accounting firms, they often involve
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: smaller scale internal family relationships. Keep it in the family is the motive and these financial forecasts are incorporated for more than the loan process. Plans to go public or invite investors are reasons a family owned business may use financial forecasts. Evaluation and examination of the operation of the company can be obtained from theses forecasts and disclose guidelines for investments and running operating assets and profits. An established company also has their own reasoning for obtaining financial forecasts. The thoughts of the future of the company and the results of the past are determinations of how the company has performed and is predicting to perform in the future. Many vital decisions are made using the information available in these forecasts and an existing company can remain status quo or explore options of expansion and growth. The measuring stick is a term applied to financial forecasts....
View Full Document

Ask a homework question - tutors are online