Let's say you are enjoying a nice sunny day at the Grand Canyon. It is mid-morning and you are looking out over the South Rim. You want to take a picture to capture the beauty you are surrounded by and share it with your friends and family.
But it's hard to capture the complete beauty in front of you in a single photograph. The beautiful view spans from your far left to your far right.
So, you use the special panoramic feature of your smartphone (or camera) to capture more of the beautiful view. Merriam-Webster defines panorama as:
"a picture exhibited a part at a time by being unrolled before the spectator; an unobstructed or complete view of an area in every direction; a comprehensive presentation of a subject".
In photography, capturing the panoramic view is a way to "stitch together" multiple images to create a single, wide photograph.
In essence, you are able to capture a more complete view of the beauty in front of you.
Financial Statements: The Past vs the Future
Traditional financial statements are that single, non-panoramic, picture of financial performance in the past.
The more "panoramic view" of financial performance includes a reliable financial forecast so you have the more complete view of what's about to happen financially.
A reliable financial forecast helps you "stitch together" the wider, more panoramic view of your financial performance.
Why settle for that single snapshot of the past when you have a powerful tool available to you to capture a more complete view of your financial past, present, and future?