Projected Income Statement Template

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Projected Income Statement

The income statement is one of the three main financial reports used by all businesses, from small to large businesses. While income statements may seem overwhelming at first, they are an essential part of doing business and you will soon come to appreciate the valuable information they provide to your business. When used together, the income statement, balance sheet, and cash flow statement provide a clear picture of your company’s overall financial position and serve as useful tools for analysis, planning, and decision-making.

A projected income statement is used for budgeting purposes. Rather than using historical numbers for a specific time period, this type of income statement uses numbers that are forecast for a future period. It is prepared similarly to a pro forma income statement, but it is not the same type of document. A pro forma statement uses forecasts based on a possible event, while a forecast income statement assumes that everything will go on as usual.

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