What is meant by Planned balance sheets?
The term "projected balance sheets" refers to forecasted balance sheets created as part of a company's financial planning process. These balance sheets provide an overview of the expected assets and financial position of the company at a specific point in the future. They are used for planning and managing company finances and are an important tool for budgeting and strategic decision-making.
Typical software functions in the area of "projected balance sheets":
- Planning and Creation: Functions for creating projected balance sheets based on planned financial data, investments, and changes in the company structure.
- Assumption Integration: Ability to input and adjust assumptions and scenario inputs, such as revenue forecasts, costs, and investments.
- Actual vs. Planned Comparison: Comparison of projected balance sheets with actual balance sheets to review deviations and adjust plans.
- Automatic Calculations: Automatic calculation of balance sheet figures and metrics based on the entered projected values.
- Reporting: Generation of reports and dashboards providing an overview of planned assets, liabilities, and equity.
- Scenario Analysis: Conducting scenario analyses to evaluate the impact of different planning assumptions and strategies.
- Integration with Financial Models: Integration of projected balance sheets into comprehensive financial models and tools for better control and planning.
- Historical Data Comparison: Comparing projected balance sheets with historical data to assess plausibility and support planning.