PREPARATION OF FORWARD-LOOKING FINANCIAL STATEMENTS: PRACTICAL ASPECTS AND SIGNIFICANCE

Abstract

The article deals with practical aspects of making a comprehensive financial forecast, including income and expenditure budget, cash flow budget and forecast balance sheet of the enterprise. The source data necessary for the formation of financial forecasts are studied in detail: planned volumes of sales, purchases, capital investments, commercial terms of contracts, credit terms, etc. The article emphasizes the interrelation of individual forms of forecast reporting. Special attention is paid to the interrelation of individual forms of forecast reporting.  The main result of the research was the development of a set of interconnected templates in the format of tables for making forecasts of key financial indicators taking into account numerous influencing factors. A step-by-step check-list for the formation of a comprehensive financial forecast is given. The practical application of the developed templates on specific numerical data is shown. The results of the research can be used by financial managers, managers and owners of companies to improve the quality of financial planning, timely identification of risks and justification of management decisions. Also, the materials of the article are suitable in the educational process for teaching financial modeling.