Report name: Sample Forecast

Accrued pre-Tax Profit and Loss Forecast

How much profit will is your business plan forecasing and how will it grow?

Charting the month by month profits

Forecast Profit before Tax

These charts illustrate forecast monthly accrued pre-tax profits. They represent the totality of forecast profits before tax but not the taxable profits from which corporation tax is calculated.

To see how year 1 profits can be improved in real time with one-click updates to key components such as gross margin, wages and overheads go to the What-If Calculator and Planner.

Taxable Profit

Calculating forecast taxable profits starts with the deduction of non-cash charges such as provisions (e.g. depreciation and provision against bad debts) plus setting off any tax losses bought forward from previous years.

The depreciation charge is replaced by capital allowances which for virtually all SMEs will mean that the entire cost of new main pool fixed assets (e.g. plant & machinery, office eqiupment, commercial vehicles) is treated as a deduction from taxable profit in the year of acquisition.

Follow the link below to view the step-by-step calculations that Figurewizard employs to arrive at the forecast taxable profit and the forecast corporation tax charge.

Profit, Liquidity and Cash Flow

A company that is expanding its business at a significant rate will more often than not need to cope with cash flow pressures.

That is especially true in the short to medium term where the sale of goods on open credit is concerned or where that expansion is underpinned by merchandise that has to be paid for by letter of credit.

The most imortant consideration is that expenditure on overheads and investment in fixed assets, including those supported by capital financing or leasing are kept as low as is prudently possinle.

In addition dividends should not be so great as to create a situation where forecast liquidity and cash flow becomes insufficient to support the company's trading going forward.