Financial projections show the detailed cost to benefit assessment of why a business plan makes sense. They are monthly or quarterly projections for the next five years of the credit union’s income statement, balance sheet, and extensive ratios that illustrate what management anticipates will happen if the organization puts the entire business plan into action.

Financial projections, which include a planned allocation or redeployment of resources, is critical because it forces management to truly think through the costs and returns of each goal (including all associated action steps) and the major resulting future changes that will occur in the organization’s financial statements. It also highlights the key variables in what’s ahead for the organization (both what’s controllable and not by the credit union), so the entire Board and management team are on the same page.

Drawing from our experience, Nice Enterprises, Inc. can show you the best practices for creating trackable and realistic financial goals for your organization. This includes helping you create projections for areas such as ROA, profitability and expenses all guided by potential scenarios that your organization may face.