Do you want to know how much profits you can earn next year? It is probably a difficult thing to predict what happen to your business in the next 12 months. But, when it is about the finance, you can use the report in the past as a comparison. Along your business run, there must be some fixed income sources and spending spots. You can use them to predict the profit and loss.
Usually, projecting profit and loss is accompanied by projecting cash flow. And, it should be similar if you plan a new business with cash consideration.
What you need is making a projected profit and loss. If you are working as an accountant, you may have been familiar with this data report. It can be made in the table form and used to list the revenue, cost of sales, expenses and other incomes. With the organized listing, you will find the amount of net sales, gross profit or loss, total expenses and net operating income. Added with other income sources, you will find out how much net income that can be gained. Setting the projected profit and loss table for 12 months will allow you see the quick view on one paper.
Investing time to arrange the projected profit and loss is not only essential to complete the steps to obtain the projected full accounting work. You can also use this as assumption of the possible profit to earn or even loss to suffer. If there is a risk of being loss, you can check which income sources or variable expenses you should adjust. This template below should help you create your own projected profit and loss for your own business.