How to create a Projected Profit and Loss Statement - Free Business Plan Series - Part 1

Create a bookkeeping spreadsheet using Microsoft Excel
http://youtu.be/LlWADbkGdac

Learn more at www.bpfs-online.com

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hello there welcome to another video
this is the bookkeeping master on
youtube this is a video that is part of
the business planning series in this
video I'm going to show you how to
create a template like this one here for
projected profit and loss statement the
projected profit loss statement gives an
annual summary of projected profit or
loss going to be made in that year in
that 12 months and so it's like you make
through these if you're doing a
three-year business plan would create a
projected profit loss statement for each
year and then perhaps final one that
summarizes all three years now a lot of
people get confused why you do a
projected profit and loss statement once
you've done a cash flow statement
the reason being is the projected profit
loss statement focuses on the profit or
loss that is going to be made annually
whereas a cash flow statement focuses on
cash and it takes into consideration
assets liabilities such as loans get
into business loans being paid back a
projected profit loss statement doesn't
take into consideration and the assets
or liabilities it's purely just cells
and expenses which equals you or your
profit other differences a casual
stemming can be month-to-month for even
week-to-week whereas a profit loss
statement and generally especially a a
projected profit loss statement
generally is a year is 12 months so
let's create this statement actually how
to do it as create a new tab first one
going to click print preview okay so
let's get these lines up on the
spreadsheet so now we're going to pray
and this top row and second downs
merchants sent to them and let's put in
projected profit and loss statement and
then we can put the business name sobe
PFS that's my business i'm going to make
that bold and underline i'll do the same
underneath merchants sent to them not
put the year in here so 2015 2016 the
first line of information we need to put
onto this projected profit loss
statement is sales information
let's create a heading sales bold and
underline and say we're selling products
i'm actually going to list cells or
projected cells reach products or
product a product B and products see now
as mentioned in previous videos when you
project sales you just have to use a
well educated guess that's what is do
your research then make a well educated
guess taught South figures are going to
be up here on column hate must put a a
pound signal in or dollar signal some
sort of currency said signal sent to
that we hardly the whole column was
center Center all let's make that bold
and underline and it's personal
nation here to sell projected sales for
product they are going to be 5,000 3000
3200 we highlight the column again
column hate right click format cells go
down to currency select your symbol i'm
using pound sterling in two decimal
places
ok then have the monetary value showing
will put another headed in this time put
total sales make bold underline were
then going to bring the line across so
just hold down the spacebar to move this
back of it it just gives great emphasis
then I'm not the total sales figure is
equals some open bracket highlight the
three titles close bracket enter so
11,200 our next line of information is
cost of sales and we need to into the
cost of cells as we want to first get a
gross profit figure and your gross
profit is your cells minus cost of sales
cost of cells can be easier to calculate
if your sim products as simply it's the
direct cost to revolved in making a sale
so if we were to sell product a and say
400-pound we paid 50 pound for that
product in our cost ourselves would be
50 pound so now we paid for the product
so once again we can itemize this
product a B and C i'm able to just copy
these
and bring them down very gay
let's put the information incest that's
2,000 4,000 800 and 900 other sub total
total cost of sales it could be if we're
setting over paypal about ebay you would
want to create perhaps payment fee
something you can directly linked to the
cost of south to make the gross profit
more accurate figure equals some bracket
close bracket our next line is gross
profit now just like total sales the
gross profit figure is a figure we
really want to make standout let's make
it bold and underline again I will bring
the line across like so and this equals
your sales minus cost of sales page
twelve minus age 21 click enter
let's make this bold can also make the
total sales bow bold very good