Financial Budgets Required to Forecast

Creating Forecasted Financial Budgets

Before you can begin forecasting your own financial statements you must collect and develop various pieces of information. This information will be organized into Financial Budgets (14 budgets in all).

This section will assist you in developing the Budgets required for creating your forecasted financial statements. By going through this process, you will gain more knowledge and confidence in your proposed business endeavors and save a great deal of time as well. Below lists the fourteen (14) Financial Budgets you’ll need to complete in order to create your Forecasted Financial Statements. Remember, we will be referring to our Case Study Example when creating the following forecasted financial budgets.

• Budget 1 Determining Your Selling Price & Product Cost (per unit)
• Budget 2 Developing Your Sales Budget
• Budget 3 Developing Your Purchase Budget
• Budget 4 Developing Your Direct Manufacturing Labor Budget
• Budget 5 Developing Your Manufacturing Factory Overhead Budget
• Budget 6 Developing Your Ending Inventory Budget
• Budget 7 Developing Your Cost of Goods Sold Budget
• Budget 8 Developing Your Fixed Asset Budget
• Budget 9 Developing Your Operating Expenses Budget
• Budget 10 Developing Your Drawings or Dividend Budget
• Budget 11 Determining All Cash Investments Into Your Company
• Budget 12 Developing Your Opening Balance Sheet
• Budget 13 Developing Your Interest Expense Budget
• Budget 14 Developing Your Income Tax Rate and Budget

After the above Financial Budgets have been developed, you will use them to create your own Forecasted Cash Flow Statement, Income Statement, Balance Sheet, Break-even Point, Sensitivity Analysis, Ratio Analysis, and Notes to the Forecasted Financial Statements.