The Importance of Financial Projection Models

Alexis Clifford  

Projecting financial stability and growth is a very important aspect of measuring a companies’ performance and future position in the economy. Financial advisors and investors use financial projection models to predict future assets, revenues, liabilities, expenses, and capital as a way to determine if a company will grow, remain constant, or decline. From this, financial advisors and investors gain a deeper understanding of a companies’ reliability, growth potential, and profitability to either recommend or advise against such investments. Modeling the future financial position of companies continually proves to be an important strategy that helps investors, financial advisors, and executives monitor company performance within the economy.  

• Alexis Clifford is a business administration major graduating with a concentration in accounting and financial services. She is a member of Lander University’s Honors College, Beta Gamma Sigma, Alpha Chi, and The National Society of Leadership and Success. After graduation, Alexis is planning on working for Town & Country Property Management in their accounting department.