A financial forecast is an estimation, or projection, of likely future income or revenue and expenses, while a financial plan lays out the necessary steps to generate future income and cover future expenses.
A financial plan can be considered synonymous with a business plan in that it lays out what a company plans to do in terms of putting resources to work to generate maximum possible revenues.
Individuals can also take advantage of a financial plan.
COGS for a bookstore include what the storeowner pays to buy books.
COGS for Garrett are what he paid for the bicycles, accessories, and clothing he sold during the month.
Match your chart of accounts, which is what accountants call your list of items that show up in your financial statements.
If the accounting divides sales into meals, drinks, and other, then the business plan should divide sales into meals, drinks, and other.
Don’t think you need to have an MBA degree or be a CPA.
Don’t think it’s about sophisticated financial models or spreadsheets.
Direct costs are also called COGS, cost of goods sold, and unit costs. That stands for Cost of Goods Sold, and applies to businesses that sell goods.
COGS for a manufacturer include raw materials and labor costs to manufacture or assemble finished goods.