What Is Projected Profit and Loss Statement ??

Hello Friends

A projected profit and loss statement is a financial document that reflects the amount of profit or loss you expect your business to generate in future periods. This is an essential document that either you or your accountant should put together. It will be a useful tracking tool for objectively determining whether your business is likely to make a profit and be successful or generate losses and eventually fail.Your projected profit and loss statement will list revenues (from sales or services provided), your cost for goods or services provided, operating expenses (such as wages, rent, advertising), and net income or loss. Depending on whether you are preparing a projected profit and loss statement for an existing business or a start up enterprise, you may have some difficulty coming up with reliable estimates. For instance, if you have an existing business, you’ll have a lot easier time coming up with projections because your historical financial information will give you a pretty good idea of what your business can do in the future. On the other hand, if you’re just starting up your business, you’re going to have to do some outside research.

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