Why are financial projections so difficult? Why does it take a CPA to create a reasonable set of financial projections?
Well it really shouldn’t be THAT hard.
Business owners that have a basic understanding of accounting, or know how to “Google” to learn about difficult terms like:
- Depreciation
- Amortization
- Cost of Goods Sold
- Gross Profit
I have managed an SBA Microloan Program now for 2 years, and have seen my fair share of “interesting” financial projections. I have noticed that the most common issues revolve around the following:
- Math and Equations
- Statement Formatting
- Assumptions
- Missing Expenses
- Financial Ratios
I recently released a new financial projection review service in addition to ProjectionHub, which is a web based tool that helps business owners create financial projections without the need for a PhD in spreadsheet modeling.
This new review service is for the business owner who can create their own financial projections, but would feel most comfortable if someone else took a look at the projections for them before they submit them to a potential investor or potential lender.
If you have any questions at all, please feel free to contact me at adam@projectionhub.com