Ch. 7 Budget Project

The budget project make sure you can create proforma financial statements so you can forecast earnings and cash flow.  This is essential to having a successful business.  The budget project is designed to coordinate with the financial project done earlier in this course.

In a true business model, the proforma financial statements (budget project) would be created first and financial statements (financial statements) would be created at the end of each month.  The two statements would then be compared to each other to see how the company is performing.  For learning purposes, the two projects need to be done in the reverse order.