One is for existing businesses and another for a startup. There are two types of Projected Income Statements. These projections will help the management to take important decisions in favor of the organization. These projections help you to decide your workforce against the targets. Thus, the transaction cycle is of approximately 2 weeks. It takes 2 days to sell and 3 days for the client to transfer the payment. ![]() New start-ups often use it to check the feasibility of their new business before getting into actual markets.įurthermore, this projection helps the investor to know the duration a transaction takes to complete.įor example, It takes 1 week to Produce and pack Product A. Startups use it for making a business plan and present it to investors for raising money for their business. The main purpose to create an Income Statement Projection for a business is to know the amount of money they will earn in the future.īig companies make projections to achieve their sales and other business goals. Income Projections are vital for every business. Purpose and Application of Income Projection Statement Similar to an income statement, the Income Statement Projection follows the following Rule: It can either be monthly, quarterly, or yearly as per our requirement. Projected Income Statement projects the estimates of revenue as well as expenses that the company might bear in the future period. It is one of the most important documents in a Business Plan. The main difference is that the income statement consists of the actual figures whereas the projected income statement consists of estimated figures for the future period.
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