Which Type of Technology is Best for Laying Out Financial Projections?

September 11, 2023
David Sunnyside

Which type of technology is best for laying out financial projections?

A financial model is a spreadsheet-based tool that brings in data from your current financial statements, plays them out and produces projections — or scenarios. The goal is to see how internal business decisions and external market conditions will impact line items and business plans.

For example, a startup can use projections to see how adding a new line of hand sanitizers may affect production and cost and therefore revenue and profit. Projections also help startups identify potential financing shortfalls and opportunities.

They also provide a common language for banks, investors and regulators to understand the company’s finances. This makes them a key part of any business plan.

David Sunnyside
Co-founder of Urban Splatter • Digital Marketer • Engineer • Meditator
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