When forecasting sales revenue, it is generally necessary to forecast the first few months.

When making sales revenue forecast, it is generally necessary to forecast the next 6- 12 months. The cost budget of each department of the company is based on the forecast of sales revenue, so when the actual sales revenue decreases, if the actual cost of each department is still implemented according to the original budget data, the profit will eventually decrease.

Under normal circumstances, the actual sales revenue will not be more accurate until the end of the month, but by the end of the month, the cost budgets of various departments have already been used up.

Therefore, it is very common for inaccurate sales forecasts to lead to rising costs and falling profits. Based on the above two reasons, the company must have sales revenue forecast and income statement forecast for the next 6 months to 12 months. In order to improve the accuracy of sales forecast, we suggest making sales forecast according to each customer and each product model.

With the sales revenue forecast, we can make a profit statement forecast. The forecast format of the income statement is just as we mentioned earlier.