Being able to forecast your organization’s finances is essential for planning and reaching future goals for success.
Being able to forecast your organization’s finances is essential for planning and reaching future goals for success. This course will provide the essential knowledge needed to become proficient at forecasting. You will learn about the types of financial statements used in forecasting, how to analyze these statements, and how you can forecast your own finances. This course will cover pro forma statements, the uses of historical financial statement data, and the value of forecasting. You will also learn the time value of money, and the differences between historical and research-based forecasting. By the end of this course, you will know how to forecast short and long-term and when to update your data.
Learning Objectives
- Identify which financial statements are used in forecasting
- Learn how to analyze key historical financial statement data
- Understand the difference between forecasting and planning
- Differentiate between historical and research-based forecasting
Skills you’ll gain
ForecastingCorporate ForecastingEconomic ForecastingExpense ForecastingFinancial ForecastingForecasting ManagementWhat You'll Learn
- Identify which financial statements are used in forecasting, including balance sheets, income statements, and cash flow statements
- Analyze key historical financial statement data to support forecasting
- Apply pro forma statements when forecasting toward the future
- Distinguish between forecasting and planning
- Differentiate between historical and research-based forecasting
- Apply the time value of money to short-term and long-term forecasting and know when to update your data
Key Takeaways
- Being able to forecast an organization's finances is essential for planning and reaching future goals for success.
- Forecasting draws on financial statements such as balance sheets, income statements, cash flow statements, and pro forma statements.
- Historical financial statement data and analysis are central to building forecasts.
- Forecasting can be approached on a historical or research-based basis, and the two differ.
- Forecasting covers both short-term and long-term horizons, and data should be updated at the right times.
Frequently Asked Questions
What will I learn in this course?
You will learn the types of financial statements used in forecasting, how to analyze these statements, and how to forecast your own finances. The course covers pro forma statements, the uses of historical financial statement data, the value of forecasting, the time value of money, and the differences between historical and research-based forecasting.
What financial statements does the course cover?
The course covers balance sheets (assets, liabilities, and equity), income statements (profit and loss), cash flow statements (cash on hand), and pro forma statements.
Does this course explain the difference between forecasting and planning?
Yes. The course helps you understand the difference between forecasting and planning, and also differentiate between historical and research-based forecasting.
Will I learn how to forecast over different time horizons?
Yes. By the end of the course you will know how to forecast both short-term and long-term and when to update your data.
What skills does this course help build?
The course develops skills in forecasting, including corporate forecasting, economic forecasting, expense forecasting, financial forecasting, and forecasting management.
Transcript
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Welcome to KnowledgeCity's course, how to use financial statements for forecasting. In this course, we'll examine how businesses can utilize information in their financial statements to forecast future financial performance. You'll be introduced to the foundational business statements every business should have and how the valuable information in them can help direct future planning and growth. By the end of this course, you'll better understand the importance of analyzing your current financials and the role they can play in guiding your future business strategy. Let's get started.
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