Projected and Estimated (B/S and P/L)
- Art Teacher
- London, UK
- 5-7 Hrs
At Aarthika Globcorp Solutions, we help businesses prepare accurate and reliable Projected and Estimated Financial Statements, essential for fundraising, loan applications, expansion planning, government tenders, and statutory compliance. A Projected Balance Sheet and Profit & Loss Account reflects the expected financial position and performance of a business based on realistic assumptions, planned activities, and market trends, while estimated statements provide a more flexible outlook based on probable outcomes under current conditions. These financial tools are not mere guesswork—they are grounded in historical data, market analysis, and reasonable assumptions to provide a clear picture of future performance. Accuracy is critical, as overstating profits or understating liabilities can lead to compliance challenges, investor disputes, or loan rejections. With our expertise, we ensure that your projections and estimates are prepared professionally, giving your business the financial credibility it needs to secure growth opportunities.
- Previous years’ audited financial statements
- Current year’s trial balance and management accounts
- Sales & purchase forecasts
- Fixed asset purchase plans and capital expenditure budgets
- Loan repayment schedules
- Inventory plans and costing details
- Payroll estimates
- Tax rate assumptions (Income Tax, GST, etc.)
- Market research and industry trend reports
- Existing contracts or confirmed orders affecting future income
- Collect Historical Data – Use past financial performance as a baseline.
- Define Assumptions – Set sales growth rates, cost increases, and investment plans.
- Estimate Revenues & Expenses – Prepare forecasted P&L.
- Prepare Projected Balance Sheet – Reflect expected assets, liabilities, and equity.
- Incorporate Tax Impact – Adjust for applicable taxes.
- Validate Figures – Cross-check with market trends and capacity constraints.
- Get Management Approval – Finalize before sharing externally.
FAQs
The key difference is that projected statements forecast financials for a future period, based on hypothetical or planned scenarios, while estimated statements predict financials for an ongoing or soon-to-end period, often using trends from past performance and current data.
Projected statements are not required to strictly follow Ind AS unless specifically prepared for statutory/regulatory submissions; commonly, they use management assumptions and may not comply with all Ind AS presentation/disclosure norms.
Tax calculation is commonly included in projected P&L to estimate net profit, though the tax rate is based on assumptions and may be approximate.
GST can be included in projected sales, typically disclosed separately as part of gross sales or as a liability, with corresponding input credits shown per the projected transaction structure.
Estimated financials can be revised mid-year as fresh data becomes available, and such revisions are standard in business practice.
CA certification is not legally required for projected statements unless requested by lenders, regulatory bodies, or for specific statutory purposes; otherwise, management can prepare them without an auditor's attestation.