This checklist is designed to ensure that all necessary steps are taken to prepare accurate financial forecasts, which are essential for strategic planning and decision-making.
Collect data from previous financial statements and operational performance metrics to provide a basis for the forecast.
List the assumptions that will influence the forecast, including market trends, economic conditions, and operational changes.
Create different forecasting models (e.g., top-down, bottom-up) based on the gathered data and identified assumptions.
Analyze how different assumptions affect financial outcomes to identify potential risks and opportunities.
Present the forecasts to key stakeholders for feedback and adjustments before finalizing.
Incorporate feedback and finalize the financial forecast for approval and distribution.
Regularly review the forecasts against actual performance and update them as necessary to reflect changes in assumptions or market conditions.