Different events can change your idea of how much money your business will make over the next year. Likewise, your view of the business expenses you will incur during the coming 12 months may have varied. Use our profit and loss template to help forecast for the year ahead
Income
A profit and loss forecast is used to predict profit and losses over the coming financial year.
Begin by focusing on next month:
- Enter your predicted sales for the upcoming month
- Add any sales returns you usually have
- Factor in any discounts to be applied
Continue inputting any additional income streams you may have. The template will automatically make the calculations for you, so enter each amount as a positive number.
The first part of forecasting profit and loss involves predicting sales
Cost of goods sold
Next, enter your stock level at the start of the month and add stock purchases plus other costs associated with your goods. Input your predicted stock level for the end of the month.The template will calculate the total cost of goods sold and your gross profit for the month.
Expenses
The bottom half of the template deals with expenses – your selling, administrative and finance expenses. Navigate down the list entering all relevant expenses, which will be calculated by the template.
Input any interest expenses and hire purchase charges to calculate your profit before tax. Lastly, enter the estimated tax you’ll pay for the month and your net profit will be calculated at the bottom.
Move on to the next month and repeat the above steps. Continue estimating your sales and expenses for the next six or 12 months.
The last column will total all your monthly sales, expenses, interest and tax data into a half-year or annual amount.
Lastly, calculate your likely expenses over the appropriate period of time.
Next steps
Download our profit and loss template (XLS) to forecast the year ahead.
Related articles
Marketing plans and effective marketing strategy for your business
For businesses looking into the future it is important to be prepared for uncertainty with a resilient cash flow plan and manageable debt.
Use a balance sheet to keep a handle on your business’ finances
No matter what stage you’re at with your business, it’s important to consider your business’ balance sheet movements. By regularly forecasting your business’ balance sheet, you will have a clearer understanding of what you’re likely to own or owe by a certain date.
Get in touch
Any advice does not take into account your personal needs, financial circumstances or objectives and you should consider whether it is appropriate for you.
ANZ recommends you read the applicable Terms and Conditions and the ANZ Financial Services Guide (PDF 104kB) before acquiring the product.
This page contains only general information which is subject to change and is not a substitute for commercial judgement or professional advice. This information does not take into account your personal and financial needs, particular objectives and/or circumstances, and you should seek appropriate independent advice (which may include property, legal, financial, taxation and accounting advice) before making any decisions, investing, or acting on it.
Tools, templates, checklists, and calculators (“ANZ Tools”) linked or referred to on this page, are only some of many ways to analyse a business or industry, or to assist your planning and business decision making. You should seek the assistance of your accountant, business or other advisor when either planning for or analysing your business.
To the extent permitted by law, all members of the ANZ group of companies, their employees, officers and contractors (“ANZ“), offer no warranty and disclaim liability or responsibility to any person for any actions, claims, costs, demands, liability, or direct or indirect losses or damage that may result from using or relying on the information set out in the anz.com pages or the ANZ Tools, and / or any act, omission or error, by any person in relation to them. To the extent permitted by law, ANZ makes no warranty and has no liability in respect of your use and reliance. ANZ Tools are also subject in many cases to further specific cautionary wording and disclaimers which you should read.
ANZ tools, templates and checklists are only some of many ways to analyse a business or industry to assist your planning and business decision making. You should seek the assistance of your business advisor or accountant when either planning for or analysing your business' performance. To the extent permitted by law, ANZ makes no warranty and has no liability, in respect of your use of and reliance on these tools.