Profit and loss forcast : The profit and loss forecast is not intended to be a detailed financial statement. It acts as a guide to help you forecast your company’s sales and expenses.

Thus the P&L is a future guide plan which you then transfer to a cash flow worksheet . This cash flow worksheet is a live document which gets updated with actual income and expense figures. The work sheet compares that what was forecast to the actual and thus will show if you are staying with the forcast plan, doing better or doing worse. If doing worse, you can then adjust your forcasts as so to prevent your business from going under.