A 3 year projected balance sheet template is a valuable tool for any business. It can help you plan for the future, make informed decisions, and track your progress over time. A projected balance sheet is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time. It is used to assess a company’s financial health and to make projections about its future performance.
Creating a projected balance sheet is a relatively simple process. It involves gathering data from your income statement, cash flow statement, and other financial records. Once you have the data, you can enter it into a template and create a projected balance sheet.
What to Include in a 3 Year Projected Balance Sheet Template
A 3 year projected balance sheet template should include the following information:
- Assets: This section lists all of the assets owned by the company. Assets can be divided into two categories: current assets and non-current assets. Current assets are those that can be easily converted into cash, such as cash, accounts receivable, and inventory. Non-current assets are those that cannot be easily converted into cash, such as property, plant, and equipment.
- Liabilities: This section lists all of the debts and obligations of the company. Liabilities can be divided into two categories: current liabilities and non-current liabilities. Current liabilities are those that are due within one year, such as accounts payable and short-term loans. Non-current liabilities are those that are due after one year, such as long-term loans and bonds.
- Equity: This section shows the net worth of the company. Equity is calculated by subtracting the company’s liabilities from its assets. Equity can be divided into two categories: contributed equity and retained earnings. Contributed equity is the amount of money that the owners of the company have invested in the business. Retained earnings are the profits that the company has earned and kept in the business.
How to Use a 3 Year Projected Balance Sheet Template
Once you have created a 3 year projected balance sheet template, you can use it to plan for the future. You can use it to set financial goals, make informed decisions, and track your progress over time.
To use a 3 year projected balance sheet template, follow these steps:
- Enter your data into the template. This data should include your income statement, cash flow statement, and other financial records.
- Create a projected balance sheet for each year. When you create a projected balance sheet, you are making assumptions about the future. These assumptions should be based on your knowledge of the company and the industry.
- Analyze your projected balance sheets. Once you have created your projected balance sheets, you should analyze them to identify any potential problems. For example, you might notice that your projected equity is declining or that your projected liabilities are increasing.
- Make adjustments to your plan. If you identify any potential problems, you should make adjustments to your plan. These adjustments might include changing your sales goals, reducing your expenses, or increasing your borrowing.
A 3 year projected balance sheet template is a valuable tool for any business. It can help you plan for the future, make informed decisions, and track your progress over time. By following these steps, you can use a projected balance sheet to improve your financial performance.
