Time:
This exercise will take about 60 minutes to complete. In total, allowing for discussion, we recommend allowing 90 minutes to complete this module.

Aims:
• To understand how a forecast profit and loss account is created.
• To give participants the opportunity to practise drafting a simple profit and loss account.
• To explain the importance of a projected cash flow statement.
• To recognise that forecasts are only as good as the assumptions on which they are based.

Group Size:
This module is suitable for use with groups of up to 15 participants.

Useful For:
Staff involved in business planning/financial forecasting for the first time.

You'll Need:
• A calculator for every two participants.

Notes:
This module is intended for people with no finance experience and looks at how to draw up simple finance projections for a business plan by drafting a forecast profit and loss account and a rudimentary cash flow statement.

There is a current vogue not to include forecast balance sheets in business plans and so the balance sheet is not covered in this module.