Add financial statements and projections for an account

Financial statements, such as Balance Sheet, Income, Ratio, Cashflow, and UCA Cashflow are captured and evaluated to understand the financial position and health of a business or an individual and assess the risk of extending credit.

A financial projection is a forecast of future revenues and expenses. Typically, the projection accounts for internal or historical data and includes a prediction based on assumptions from a business plan and other external market factors.

With Q2 Origination, the loan officers can do the following:

• Create financial statements such as Balance Sheet, Income, Ratio, Cashflow, and UCA Cashflow.

• Analyze the financial ratios of a financial statement to evaluate the health and performance of an organization on various financial statement parameters. 

• Create projections based on already spread financial statements and additional assumptions.

• Prepare a projected financial statement for a future period based on a selected historical statement.

• Generate a proforma balance sheet and income statement by selecting multiple historical statements as references.
  When multiple statements are referenced, the system computes and displays the average across all historical statements.

Add financial statements and projections

This section describes how to add financial statements and projections. 

Prerequisites

Before you proceed to add a financial statement and projection, ensure that the following prerequisites are met:

1. The template for the financial statement is captured.

2. An application is created using the above template.

3. To create a new projection statement, a financial statement must be created.

Steps

To add a financial statement and projection:

1. Log in to your Salesforce account.

2. Go to  (App Launcher) >  Applications.

3. On the  Applications tab, and from the list of applications, select the required application.
   

4. Go to More > Financial Spreads > the subtabs (for example, to add a financial statement for the balance sheet, go to Financial Spreads > Balance Sheet.) to add the specific financial template and then perform the following actions:

   
   

5. Select the edit icon next to the account name.
   

   

6. Select Account in the Type list.

7. Select an account in the Accounts list for which you want to add a statement or a projection.

8. Select Ok.

1. The Statement Year is incremented by one year from the year mentioned in the previous statement. 

2. Audit Method, Accounting Basis, Accountant, and Credit Analyst get populated with the value of the previous statement.

3. The Statement Date is incremented by one year. For example, if the Statement Date for the previous statement is 12/31/2021, for the new statement, it will be 12/31/2022.

4. Statement Type and Months Covered get defaulted to Annual and 12, respectively.

5. In the Previous Statement field, the previous statement is selected.

9. In the Template list, select the type of template you want to add to the account.
   
   

10. To add a new statement or projected statement, select (Add New Statement/Projection Statement) and then select  Add New Statement or Add Projection Statement.

    

    Note:

    Depending on the option selected, a window is displayed for you to provide the required details.

    

    

11. Provide the details as described in the following table, and then select Save to add a new statement or a projected statement or Save And Next to create a new statement:

    Field Name	Applicable To	Action and Information
    Financial Statement Name/Name	Add New Statement and Add Projection Statement	It is an identifier for the financial statement or the projected statement.
    Statement Date	Add New Statement and Add Projection Statement	It indicates the ending date of the financial reporting period.
    Statement Year	Add New Statement	It indicates the year in which the statement is created.
    Accounting Basis	Add New Statement	It refers tothe methodology under which revenues and expenses are recognized in the financial statements of a business. Supported options: CASH ACCRUAL
    Months Covered	Add New Statement and Add Projection Statement	It indicates the number of months included in the financial statement (12 months is an annual financial statement, 3 months is a quarterly financial statement, and so on). Note: For Interim Statement Type, specify the number of months to be covered between 0 and 12.
    Audit Method	Add New Statement	It Indicates whether the financial statement was prepared by the business/organization, the financial institution, or a third party.
    Statement Type	Add New Statement and Add Projection Statement	It indicates the type of financial statement (annual or interim).
    Previous Statement	Add New Statement	It indicates the base statement to generate this statement.
    Financial Statements For Projection	Add Projection Statement	It indicates the base statements to generate the projection. Note: When multiple statements are referenced, the system computes and displays the average across all historical statements.
    Template Detail	Add Projection Statement	To add the factors impacting the projections and their value in percentage, select Add Row. For example, if you want to project that the total sales is expected to increase by 20%, select total sales as a factor and 20 as Value.

12. When you select Save And Next:

    

• The Statement Year is incremented by one year from the year mentioned in the previous statement. 

• Audit Method, Accounting Basis, Accountant, and Credit Analyst get populated with the value of the previous statement.

• The Statement Date is incremented by one year. For example, if the Statement Date for the previous statement is 12/31/2021, for the new statement, it will be 12/31/2022.

• Statement Type and Months Covered get defaulted to Annual and 12, respectively.

• In the Previous Statement field, the previous statement is selected.