Balance sheet forecasting sounds terribly tough, but it’s not. If you can forecast your P & L, then balance sheet forecasting is just an extension that can strengthen the quality of your earnings forecast and actually help predict the future financial health of your organization. For example, a balance sheet forecast provides that critical cash flow dimension which will assure banks and investors that you can match sources with uses of funds to achieve everyone’s financial goals. Bruce Lynn, a corporate treasury consultant specializing in cash and working capital management, walks through a “how to” to suggest practical best practices in balance sheet forecasting, using examples and numbers to help cement the learning. 

The course discusses why balance sheet forecasting is important and how to link it to a P & L forecast. The course also covers the assumptions required to forecast key components of any balance sheet with its ability to provide insight into future financial ratios, working capital (A/R, Inventory and A/P), cash and investments, CAPEX, debt and equity. 

By the end of the course you and your planning team will be able to initiate a balance sheet forecast and integrate this forecast with the other parts of your financial plan.

Learning Objectives
  • Recognize why balance sheet forecasting is important and how to link it to a P & L forecast
  • Identify the assumptions required to forecast key components of any balance sheet
  • Discover how to initiate a balance sheet forecast
Last updated/reviewed: March 18, 2024
28 Reviews (128 ratings)

Reviews

5
Member's Profile
Unfortunately many executives do not understand the importance of the balance sheet nor understand the balance sheet itself. They tend to focus on the Income Statement. This course has given me more ideas to present to stakeholders to gain more interest from them in scrutinizing the balance sheet. Nice course.

4
Member's Profile
Very good class but the audio was a little low. Had to have my speakers a bit higher than some of the other classes. Not sure why... Focused more on ratios than I anticipated but good coverage of the process and the players involved.

4
Member's Profile
Forecasting a balance sheet in the near term is essential, but corroborative, with a direct model in the short term. Long term balance sheet forecasting is more aspirational, but should be directionally accurate.

3
Anonymous Author
This a good course with a lot of real world examples. However, the audio is muffled and the graphics contained a lot of details, which made it difficult to follow at a good pace.

3
Anonymous Author
There were good examples, like the Apple business case, but not enough other business cases to assist with forecasting. The instructor was not as engaging as other courses.

5
Member's Profile
Good presentation that provided examples and supplemental charts to effectively cover key points. Presenter is very knowledgeable on the topic and recommend course.

3
Anonymous Author
Basic overview of importance of balance sheet forecasting. Presenter is a consultant with more treasury experience, so may be of limited value for other audiences.

4
Member's Profile
Interesting and insightful and really liked the mathematical formulas provided, i.e. ROE. At times the instructor's voice faded out and was harder to hear.

5
Anonymous Author
Great big picture considerations. Really makes you think about how to couch your target goals in attainable goals for the company's situation and resources.

4
Anonymous Author
Hard to hear portions of the audio. Good information, but I wish it would have contained more information on how to forecast the balance sheet instead.

5
Member's Profile
Very interesting insight on balance sheet forecasting. A great high level understanding of the purpose and concepts.

3
Anonymous Author
There was quite a bit of good material presented but the presentation was dry and not very interesting.

4
Anonymous Author
This course provided good high level information. It was good from an upper management point of view.

2
Member's Profile
Included true and essential info, but not any take aways to implement into my current model

4
Member's Profile
Interesting - just now getting looking at starting balance sheet forecasting - very helpful

5
Member's Profile
this class was a great intro into BS forecasting. i recommend for any treasury professional

4
Anonymous Author
Excellent course explaining why balance sheet forecasting is important to the business.

Anonymous Author
i had expected more practical explantion with examples about balance sheet forecast.

3
Anonymous Author
The content was good, but it was very difficult to hear in quite a few spots.

4
Member's Profile
The course gave a good overview of the importance of balance sheet forecasting.

5
Member's Profile
this course certainly provided a nice overview of balance sheet forecasting

5
Anonymous Author
This is a good high level review of why to do a balance sheet forecast.

4
Anonymous Author
Great overview and explanation of need for Balance Sheet Forecasting

5
Anonymous Author
The material was presented in a clear and understandable manner.

4
Anonymous Author
Was hoping for more working capital estimating techniques.

4
Anonymous Author
Some real good takeaways.

4
Anonymous Author
Overall good course.

5
Anonymous Author
excellent review

Prerequisites
Course Complexity: Intermediate

Knowledge of key finance terms along with an understanding of how the balance sheet works, and how it interplays with the P&L and the cash flow statement.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
Better Planning
  Importance of Forecasting9:44
  Links to P&L Forecast5:25
  Forecasting Criteria12:00
  Forecasting Criteria (Continued)9:35
Measuring Success
  Measuring Forecast Success8:14
  Measuring Forecast Success Example8:11
CONCLUSION
  Initiating Balance Sheet Forecasting and Conclusion10:33
Continuous Play
  Better Planning Through Balance Sheet Forecasting 1:04:24
SUPPORTING MATERIALS
  Slides: Balance Sheet ForecastingPDF
  Balance Sheet Forecasting Glossary/IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam