Click here to view and download the multi-year financial projection sample shown above in Excel-format
Long-term financial planning stimulates discussion about the financial impact of an organization’s plans and objectives, and engenders a long-range perspective for decision makers. A multi-year financial projection is a tool to minimize financial challenges, stimulate long-term and strategic thinking, gain consensus on long-term financial direction, and communicate plans with internal and external stakeholders.
To simplify preparation of the projection and to maximize its usefulness, it should be prepared the same way, and in the same level of detail as the annual budget. The first year of the multi-year projection should become the first draft of the annual operating budget. The projection should be updated each year by adding an additional year of projection, reviewing and updating previous assumptions used, and considering new information or management plans.
Projection assumptions should be documented in the same way as are assumptions for the budget.
Assumptions related to each projected line item should be documented and should include:
If you have any questions related to multi-year projections, feel free to reach out to Kevin directly:
Kevin Harper, CPA
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