Income statement, cash flow, financing: understanding the 3 key tables

Three tables, three questions

Many founders confuse "making money" with "having money". Yet these are two different notions, measured by two distinct tables. A solid forecast combines three.

1. The income statement: am I profitable?

The projected income statement measures economic performance over a year: it sets revenue against costs to produce a result.

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Revenue

− Purchases and variable costs

= Gross margin

− Fixed costs (salaries, rent, insurance…)

= EBITDA

− Depreciation

= Operating result

− Financial costs / + Financial income

= Net result

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It answers one question: does your activity create value? But beware: a positive result does not guarantee you have cash in the bank.

2. The cash flow plan: do I have cash?

The cash flow plan tracks, month by month, the amounts actually received and paid out. A sale invoiced in January but paid in March appears in January's result… but in March's cash.

That timing gap explains why a profitable company can still run out of liquidity. The cash flow plan answers: will I be able to pay my bills on time?

3. The financing plan: does my project hold up?

The financing plan sets against each other:

• the long-term needs: investments and working capital
• the long-term resources: equity contributions, shareholder loans, bank loans, grants

It answers: how is the launch financed? A balanced plan shows that resources cover needs, ideally with a safety margin.

Why they must fit together

This is the decisive point: these tables do not live separate lives.

• The net result from the income statement feeds cash and the balance sheet.
• A loan in the financing plan generates repayments in cash and financial costs in the income statement.
• An investment leaves cash, enters the balance sheet and is gradually depreciated in the income statement.

A banker instantly spots tables that don't reconcile. That's often where hand-built files lose credibility.

The advantage of an integrated engine

With Juristelo, you don't fill in three separate tables: you answer questions, and each answer propagates automatically into the income statement, the cash flow and the financing. Consistency is guaranteed by design.

Want to see your figures fit together automatically? Start your forecast with Juristelo — first pages free.