A workshop on financial plan was organized on 24th November 2022 by the Department of Management Sciences and Department of Public Administration. Dr. Adeel conducted this learning session for the final year students of B.Com, BBA and BPA. The importance of finances in a business were discussed as financial assumptions should accurately reflect the information given in a business plan and they should be reasonably accurate. Below are the key points that were discussed in the workshop:
Income Statement
The income statement assumptions should include revenue, cost of goods sold, operating expenses, and depreciation/amortization, as well as any other line items that will impact the income statement.
Balance Sheet
The balance sheet assumptions should include assets, liabilities, and owner’s equity, as well as any other line items that will impact the balance sheet. One of the most common mistakes is not including all cash inflows and outflows.
Cash Flow Statement
Cash flow assumptions should be made, but they do not impact the balance sheet or income statement until actually received or paid. You can include the cumulative cash flow assumption on the financial model to be sure it is included with each year’s projections.