The financial projections template produces an income statement, balance sheet and cash flow statement for the business. These 3 financial statements appear initially to be unconnected; however, closer investigation shows that they are linked and a change in one statement substantially impacts the other statements. The entrepreneur need to understand these connections in order to be able to understand the financial performance of the business.
The income statement forecast, sometimes called the profit and loss forecast, is one of the main statements for business plan financials. The income statement forecast shows a business’s financial performance over an accounting period. The accounting period can be any length but is usually a month or a year.
There are many income statement forms, the layout below acts as a quick reference, and sets out the most commonly encountered accounting terms when dealing with a business plan income statement forecast.
The projected balance sheet forecast is one of the main statements for business plan financials and is sometimes referred to as the statement of financial position. The balance sheet forecast shows a financial snapshot of the business at a specific point in time, usually at the end of each accounting year.
There are many balance sheet forms, the layout below acts as a quick reference, and sets out the most commonly encountered accounting terms when dealing with a business plan balance sheet forecast.