Projected and proposed financials are financial statements that provide estimates and forecasts of a company’s future financial performance and position. These statements are used for planning, budgeting, and decision-making purposes.

• Projected Financials:

Projected financials are forward-looking statements that estimate the financial results and position of a company for a future period. They are based on assumptions, projections, and expectations regarding future revenues, expenses, investments, and other financial factors. Projected financials help businesses assess their future performance and make informed decisions about investments, expansion plans, financing options, and resource allocation.

Typically, projected financials include:

Projected Income Statement: Estimates of revenue, expenses, and profitability.

Projected Balance Sheet: Estimates of assets, liabilities, and equity at a specific point in the future.

Projected Cash Flow Statement: Estimates of cash inflows and outflows, highlighting the timing and availability of cash.

• Proposed Financials:

Proposed financials are financial statements that outline the anticipated financial performance and position of a company if specific actions or decisions are implemented. These proposed actions could include new investments, changes in pricing or cost structure, strategic initiatives, or other business decisions. Proposed financials are used to evaluate the potential impact of these proposed actions on the company’s financials.

Proposed financials typically involve:

Proposed Income Statement: The expected impact on revenues, expenses, and profitability resulting from proposed actions.

Proposed Balance Sheet: The anticipated changes in assets, liabilities, and equity based on proposed decisions.

Proposed Cash Flow Statement: The projected impact on cash flows resulting from proposed actions.

Both projected and proposed financials are valuable tools for business planning and decision-making. They help management and stakeholders assess the financial feasibility and potential outcomes of various scenarios, strategies, or investments. However, it is important to note that these financials are based on estimates, assumptions, and projections, and may not accurately reflect the actual results or outcomes. Therefore, regular monitoring, review, and adjustment of these financials are necessary to ensure their relevance and accuracy as business circumstances evolve.