MANAGEMENT

Detailed explanation-1: -Financial projections use existing or estimated financial data to forecast your business’s future income and expenses. They often include different scenarios so you can see how changes to one aspect of your finances (such as higher sales or lower operating expenses) might affect your profitability.

Detailed explanation-2: -A financial projection shows the expected revenues, expenses, and cash flows of a business over a forecast period. This forecast may be used internally as the basis for a more detailed budget, or it may be presented to outsiders.

Detailed explanation-3: -What is a budget projection? A budget projection analyzes qualitative and quantitative data to develop a long-term prediction of estimated future financial results. A company’s financial planning and analysis team typically creates the financial budget projection.

Detailed explanation-4: -A financial forecast is an estimation, or projection, of likely future income or revenue and expenses, while a financial plan lays out the necessary steps to generate future income and cover future expenses.