The definition of 'Financial forecast'

A financial forecast is an estimate of future financial outcomes for a company. Financial forecasts estimate future income and expenses for a business over a period of time, generally the next year. They are used to develop projections for profit and loss statements, balance sheets, burn rate, and other cash flow forecasts.

Financial forecasts can use historical accounting and sales data, and external market and economic indicators, to predict what will happen to the company in financial terms over the given period of time.