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The more information you have as a business owner, the more likely you are to succeed. This includes information about your company’s past, present, and future. Armed with such information, you are better able to make decisions that make the most of your resources and opportunities for growth. As any entrepreneur can attest to, any decision you make centers around one or more assumptions of what the future will look like. While you may be able to get away with a lucky guess here and there, why not use reliable data to remove some of the guesswork? No matter the type or size of your business, financial projections should be a central element of your operations. That way, you can help your team maximize the use of the resources you have available right now, as well as plan strategically for a profitable future. If you think your company could benefit from making accurate financial projections, read on for more information and advice from Walton Accounting and Tax Solutions : What Is a Financial Projection? Simply put, a financial projection is a document that contains estimates and plans for potential business outcomes. Most often created on a spreadsheet, it lays out forecasting of income, expenses, and operational strategies over an established period of time. The overarching goal of a projection is to maximize resources, minimize waste, and set the stage for healthy growth. While it includes existing funds, a projection goes much further. It essentially provides your team with a step-by-step guide for making critical decisions going forward. Why You Need Financial Projections As previously mentioned, realistic financial projections can do wonders in helping your company get the most use out of both your current and future resources, which ultimately will improve your prospects of profit and overall success down the road. Sure, making these projections takes time, which is why so many small business owners neglect them. However, just the slightest improvements to your team’s forecasting can save you thousands—if not millions— of dollars. How to Make Realistic Projections As can be expected, making accurate financial projections isn’t something you can do with minimal knowledge or commitment. If you want to handle this responsibility yourself (and become better equipped to lead your business in general), then consider going back to school. Along with broadening and deepening your business acumen, pursuing an online degree in accounting can teach you about many financial principles and practices that will help your company succeed, including basic accounting practices, creating balance sheets, and making realistic financial projections. Another option is to hire professionals to help you with projections. It’s critical to at least be aware and have a basic understanding of your business’ numbers. Working with an agency like Walton Accounting and Tax Solutions can help you get there. Along with assisting you with financial projections, we can teach you habits and strategies that will help you thrive as a business owner for years to come. Moreover, using the right tools is crucial when it comes to making realistic financial projections. There are many software products on the market that can help you accurately forecast revenue and efficiently allocate resources so that your company is set up for steady growth. Here are a few products to keep in mind: ● Baremetrics ● Anaplan ● IBM Planning Analytics ● NetSuite CRM ● Workday Adaptive Planning ● SalesDirector.ai ● Forecast Pro Your small business should view financial projections as being much more than that little section of your business plan that you only look at once a year. If you really want to optimize your future growth, now is the time to start making accurate projections. Consider pursuing an accounting degree, hire professional financial services to guide your team through the process of making projections, and find tools that will make the whole experience easier and more efficient. Would you like to read more helpful content or learn about our financial services? Visit waltonfinancialservices.com today!