Page 129 - Bord Bia
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ROADMAP
STAGE 1
g) Funding & Financials
Continued
Key Financial Statements for all Start Up businesses
Budget Forecasting is inancial planning for a set of activities which will be implemented to
launch and grow the business. The budgeting process will include the following tasks:
• Preparing estimates of future sales
• Preparing estimates of future cash collections and payments
• Preparing estimates of the future day-to-day activities of the organisation
• Summarising these estimates into a P&L statement and balance sheet
The budgeted P&L statement and Balance Sheet are also known as pro-forma inancial
statements.
These statements are based on key assumptions and projections of future activities. Once
prepared and approved, the budgeted P&L and Balance Sheet are used to manage the future
activities of the business.
They are also key to managing investors expectations in regard to the projected performance of
the business, especially in the start-up phase.
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