Profit and Loss Statement - Sales

This will set out the expected sales for each month of the next year. The sales budget should be based upon expected sales volume and prices. A single sales line can be predicted but it can be prepared using more detail such as by product line or by customer (or a combination of the two). 

The key questions are:

• What sales are you confident of achieving?

• Are there firm orders or contracts?

• Are there key customers that the business can rely on?

• Are there seasonal variations to the sales pattern?

• Does the business have the capacity to meet increasing demand?