MANAGEMENT

Detailed explanation-1: -Financial forecasting is the process of estimating or predicting how a business will perform in the future. The most common type of financial forecast is an income statement; however, in a complete financial model, all three financial statements are forecasted.

Detailed explanation-2: -To make a forecast, put past monthly expenses and sales in a spreadsheet up until the present date. Then stretch your current sales and expenses forward into future months and years. Incorporate the planned and predicted factors and their expected effects on revenue and expenses.

Detailed explanation-3: -Financial forecasting is predicting a company’s financial future by examining historical performance data, such as revenue, cash flow, expenses, or sales. This involves guesswork and assumptions, as many unforeseen factors can influence business performance.

Detailed explanation-4: -Income Statement The Income (Profit and Loss) Statement, commonly referred to as the P&L statement, summarizes the revenue and expenses for a specific time period (one month, one quarter, one year, etc.) The Projected Income Statement is a snapshot of your forecasted sales, cost of sales, and expenses.