How to Create Business Balance Sheet Scenarios

by Louise Balle

Investors commonly use financial forecasts as a basis for decisions on whether a company is viable. One of the most important statements used for analyzing financial information is the balance sheet. Creating and analyzing scenarios (multiple versions of the same statement with different parameters) is key to financial forecasting. Accounting programs simplify the process of generating these balance sheet scenarios.

1. Create business balance sheet scenarios using Balance Sheet Manager from FIMAC Solutions. This software is an add-on to use with the Risk Analytics ALM Model software. The software generates multiple “what if” scenarios for your balance sheet. Change the earnings, equity value, liquidity and securities as desired to create the different balance sheets for review.

2. Construct business balance sheet scenarios using Whitebirch Enterprise Planning. Establish multiple years of balance sheets, then model them by entering different assumptions and details regarding assets and liabilities. Look at sheets side by side, reorganize the information and drill down the data in the balance sheet to specific details for thorough analysis. This software permits access by multiple users so you can share the balance sheet analysis with other authorized users.

3. Generate multiple business balance sheet scenarios using Alight Enterprise software. This tool offers “Spread Across Scenarios,” which give you a high and low estimate for your financial statements. The software also supports a variety of balance sheets to use for modeling to simply your analyses. Create and print reports for review in a number of formats ranging from batch to ad-hoc reporting.

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