Written on the 21 October 2013 by Queensland Government
Financial statements and forecasts show how your business has been performing and how you think it will perform over time.
Financial statements are historical. They show you how your business has been operating (i.e. in terms of profitability, cash flow, assets and liabilities etc.). Financial forecasts, on the other hand, look to the future. They project a financial situation you should be aiming for.
Financial statements and forecasts are valuable reference tools to help guide your business planning. They are also key documents for attracting funding. Investors and creditors will use them to assess the health of your business's finances.
This guide explains how to use financial statements and forecasts to monitor and manage your business performance