One of the most important tasks for you is to determine how much money you need for your business. You cannot decide this without a profit and loss forecast. Hence, you have to decide how your business will operate, how your business will get money, how your business will spend money and how you will return money to your supporters or investors. You may have to do some guesswork for this, and you will try your best to make realistic projections. Please remember that you have to bring an accuracy rate of plus or minus 10% for this.
A profit and loss forecast is a projection which shows how much sales revenue your business will generate and how much money your business will spend as direct cost of the product or service and overhead expenses of your business. It shows how much profit their business will generate, which is very important to predict the money which you will spend and the money which will come. it is also important to predict that the money which will come will be higher than the money which you will spend, and hence the cash flow of the business will stay healthy.
your business profit result will be determined by three figures
1. Sales revenue: That is the amount which your business will earn from sales activities.
2. Cost of sales: this will be the cost of your product or service.
3. Fix expenses: which you have to pay anyway to run your business.
Complete Your Profit and Loss Forecast
1. Sales Revenue:You have already completed self-revenue for guys, so simply you need to put total sales revenue each month for 2 years from the shelf revenue forecast you have completed.
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