Financial projections are a strategic tool used by businesses to plan for their future. By creating them, companies can establish a baseline of where they’re at financially and develop a clear understanding of financial goals. This process involves forecasting cash flow, income, balance sheets and other key financial metrics over a set period of time. It’s important for companies to create accurate projections in order to understand the amount of capital needed to launch new products or services, manage expenses, and anticipate potential risks along the way. Creating financial projections can be a complex process so it is important for any business to seek out outside advice from experienced financial consultants if need be.