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Financial Projections  
Level
Associate
The term 'financial projections' refers to forecastspredictions of a company's future financial performance. It's similar to a weather forecast, but instead of predicting rain, you're predicting profits, income, expenses, and cash flowthe incoming and outgoing money.
Context
Business
In a startup business setting, financial projections are often used when seeking venture capitalmoney invested in businesses. An entrepreneur might say, 'Our financial projections show a break-even pointwhen costs equal revenue in the second quarter of the next year.'
In financial planning, projections form part of annual budgetingplanning income and expenses and forward planningplanning for the future. A finance manager might explain, 'Our financial projections expect a 5% growth in sales and a 2% decrease in product costs.'

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