Financial Forecast – How Long & How Detailed

Published by slang January 20th, 2007 in Financial Planning

The earlier article dealt with some of the reasons for preparing the financial forecast.

As for the length and depth/details of the financial forecast, it varies as tabulated below:

	Purpose/Requirements	How detailed?
1	To obtain banking facilities	12 months + 2 years
2	To restructure outstanding debts with banks	12 months + 3 to 6 years
3	To prepare for IPO	3 to 5 years
4	To assess the value of a company	2 to 3 years
5	To estimate tax payable	12 months to 2 years
6	To monitor cash flow of the company	12 months

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