Profit and Loss Forecast
Download our free Profit and Loss Forecast template to easily create your own income statement.
A profit and loss forecast shows the expected revenue and expenses for your business over a period of time. It shows how much profit is likely from a predicted level of trading.
Producing a profit and loss forecast involves listing your planned expenses and calculating the sales targets needed to reach your profit goals. You can then check your forecast regularly to ensure your business is running according to plan.
You can compile your profit and loss forecast in the same format as your profit and loss statement. This will allow you to compare them later and refine your projections for the future.
It's important to note that a profit and loss forecast does not reflect your liquidity. It contains non-cash items such as depreciation, creditors you have not paid, and invoices raised but for which no cash has been received. It also excludes any payment of loans.
To get an idea of your business's likely cash position, you will need to create a cash flow forecast.
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