Building Pro Formas like a Pro

Description
Financial forecasting is essential, and makes up a really important part of the general planning process. The least meaningful part is probably the actual numbers. The part that means the most is probably more the thinking process that goes behind the numbers; the part in which you identify the key assumptions. Despite huge amounts of operating success, it's rare that you will actually end up 'on budget.' This article talks about the principal areas of a forecast and what parts can mess up. It also includes some hints on how you can produce useful and well-done pro formas.

*Originally posted on StartUpCFO.ca.*