Projected Income Statement Template is a document that shows a projection of financial outcome of a company for a particular period of time. It is one the most crucial document of a business plan. It estimates the earnings and expenses for the future time period.
Projected Income Statement Template
The income projections are key for every successful business. Many companies make estimations in order to accomplish their selling and other business targets. New startups can use this income statement projection template to test the feasibility and practicality of their business before going into the substantial market.
Benefits of Projected Income Statements
In business, financial statements are important for financial analysis, and income statement projection is one of them. The main target of this statement is to track the revenues and expenses for a company. The income statement provides an overall view of the company’s finances for a longer time period. The income statement is vital even if you are just a small startup.
These income projections also help you to choose personnel against the business goals. These projections are helpful for management to take crucial decisions for the benefits of a company.
Contents of Projected Income Statement Template
This template consists of three main parts:
- Header Segment
- Revenue Segment
- Expense Operating Segment
As usual, this part contains the name of the company and title of this template “Projected Income Statement Template”.
This part contains the sources of revenue of an organization. List down all the sources of revenue in this segment according to the type of an organization. Revenues are the first item you should estimate. In our example, you suppose you can sell 100 gadgets at an average price of $20 each, so the revenue estimate is $2000.
Revenue is the money you get from the sales of your products in a business. It doesn’t cover special items like the gain or loss from assets sale. An organization does not identify the gain as revenue, but they add this gain to the income statement.
In this segment, you list down all the operating expenses such as wages, rents, preservation, tours, etc. and total all the expenses using “SUM” function. Finally, subtract these operating expenses from gross profit to get the project net profit for a specific period of time.
Thanks for reading us and if you like this template, be sure to share and follow us. If you have any question please share it via comments and also get all the features of other templates and more when you use myexcelproject.com