Projections Module
Click on the Projections icon from the main menu to begin the process of making projections about the growth of your company.
Here is an “up-close” view of the tabs that are included in the Projections module:
Projections can be done with months or years as the projection periods. A monthly projection is similar to a budget, but tends to be done more often than once a year. A projection is used to answer the question “how will things be the next 6 months” as opposed to “what are my sales and expense goals for the 12 months of 2009?” With the projection, you use the built in model to do a full income statement, balance sheet, and cash flow statement forecast. A budget tends to be income statement only.
In the projections module, you will be able to use the Comparanator to compare scenarios.
Below is a 5-part series of articles covering the fundamentals of doing financial projections using SurvivalWare and the generic financial model that comes with it. To start, I’d like to define a projection as your best guess about what is going to happen given a number of explicit assumptions.
You could do a sales projection and stop there. Your explicit assumption might be “I expect sales to be 10% above the year-ago value for the next several months.” Or “I’d like sales to continue growing as they have recently, and exhibit the same seasonality.” SurvivalWare accommodates either.
Part 1 - getting familiar with the Forecast
Tool
Part 2 - Doing a complete Cash Flow
Projection