A Model for Forecasting Small Business Financial Statements and Firm Performance
Business Education & Accreditation, v. 9(2), p. 61-84, 2017
24 Pages Posted: 18 Oct 2017 Last revised: 21 May 2020
Date Written: 2017
Abstract
Forecasting financial statements and completing comprehensive financial analysis constitutes a considerable challenge for entrepreneurs. Students in various entrepreneurship, finance and accounting courses also face this challenge. This paper presents a spreadsheet template that assists entrepreneurs and students with this task. The template creates forecasted financial statements, a capital budget, calculations of firm value and ratio analysis. The template addresses specific considerations of start-up firms. The template provides flexibility that allows adaptions to various entrepreneurs and to meet learning objectives of courses at varying levels.
Keywords: Financial Statements, Pro-Forma Financial Statements, Forecasting, Entrepreneurship, Small Business Finance, Accounting for Small Businesses
JEL Classification: A2, G31, M13, M41
Suggested Citation: Suggested Citation