This will allow you to estimate how much you need to sell to cover your costs while generating a positive result.

Keep in mind, however, that even if you have set up a profit budget and expect to make a profit, income and expenditure may be uneven throughout the year. This is why it is useful to draw up a cash flow budget in parallel with the profit and loss budget to better plan your company's cash flow and ensure your ability to pay.

At MOORE you will find resources for preparing both profit and loss and cash flow budgets.