The Income statement forecast presents the profits, costs and result for a future period. It is an important tool for tracking the management of the company which allows you to understand how the financial situation will evolve.
With Banana Accounting, thanks to the forecasts with the double entry method, you have complete forecast budgets and that you can organize in different ways. The program also calculates forecasts over several years.
You can have a very precise vision of the evolution of the economical situation.
The structure of the Income statement is the same as that used in accounting file. When printing, you can indicate which values to display, those of the final balance, or the budgeted balance or of both.
The forecast values are calculated taking into account the opening balances and forecast movements indicated in the Budget table. When you change a budget entry, the forecasts are instantly updated. You can simulate and test, relocate a payment, add an investment, modify sales and see how the budget changes over time.
Income statement values can be displayed in several ways.
Use of quantities and formulas
The quantity and price column of the Budget table allow you to prepare more realistic forecasts, using the same methodology as spreadsheets. This allows for faster simulations. It is sufficient that you change the price and you access the new forecasts of the income statement automatically and also those of the Balance Sheet and Liquidity.
The formulas allow you to automate cost calculation, so that for example, when you change sales the purchase costs change in percentage. In this way you can use precise income statement forecasts that update automatically. Formulas are particularly useful when making forecasts over multiple years.
The Income statement forecast, based on the double entry method, allows you to obtain the forecasts of the costs and revenues, using the same accounts and groups as those of the accounting file. The same structure of the items, that make up the income statements, is used for forecasting. Values and reports are available automatically to display in detail, day by day, how liquidity evolves and the situation of customers.
The structure of the Chart of Accounts, on which the forecast is also based, is customizable. This can be done by simply using the main groups and the accounts that are part of it, or more in a more complex way, by also inserting subgroups, for a more detailed view.
The structure of the Profit and Loss Account is gradually scaled and allows you to view the interim and final results for the year after paying the taxes.
- Cost of goods.
Gross operating result (total of Revenues and Costs).
- Staff costs
- General costs.
Operating result (total of the gross operating result, personnel costs and general costs).
- Financial costs.
Operating result before taxes and depreciation(Total of operating result and financial costs).
Operating result before taxes (Total of ordinary Result and Depreciation).
Profit and Loss before Taxes (total of the Result before taxes and Taxes and duties).
Accounts / Category Table
In the Budget column of the Accounts table, for double entry accounting, and of the Categories table for revenue and expenditure, the forecast values for all the accounts and groups of the Income statement are displayed. With a glance you have an instant view of the forecasted Income statement. The values refer to the accounting period and the variations are compared to the current balance.
If you require more details, you can add accounts or groups.
Enhanced Balance sheet with groups
Through Enhanced Balance Sheet with groups command, you can view the Provisional Balance Sheet, choosing the presentation mode you need.
- Indicate the values of the Budget in the columns section.
You can display the current (accounting) values, the estimate values or both.
- Set up the Period.
If a period that exceeds the accounting period, is indicated, the program will automatically switch to budgeting over several years.
- Indicate the subdivision by period required.
- In the Rows section, you can exclude accounts and thus have a view of groups only.
- If you think you're use this print setting again, create a Customization.
Using the different options you can customize your prints. Below are some examples.
This print has been set up with the quote values for the current year only.
The final (current) values are compared with those of the forecast.
Quarterly forecast income statement
In the Subdivision section set quarterly and the program shows the forecast income statement for the various quarters.
The evolution of the budget forecast during the year will now be displayed.
Quarterly budget with comparison
This printout is set up to print both the estimate and the final balance. We therefore have the expected and current situation at the end of the quarters.
Three-year forecast for Profit and Loss account
If you insert the forecast movements with the repetition code, the program is able to prepare forecasts beyond the defined period.
To obtain forecasts over several years, the transactions are entered in the Budget table with repetition (Y).
The printout is set up to obtain the estimate of the income statement over three years.
The Accounting Report is similar to the one for Enhanced balance sheet with groups, with the difference that the display takes place in the Accounts table in columns.
You can therefore use it to get an instant view of the evolution of liquidity accounts.