Free Five Year Projections Template

Here is an Excel Template for Five Year Projections for any kind of Businesses and based on Income Statements, Cash Flow Statements, and Balance Sheet facts and figures. Five-year business projection is important for the growth of any business because it can provide a clear idea about the performance of a company over the next five financial years. It is the best way to analyze the profit potential of a business, the total capital requirements of the business, and the expected cash flow of the organization during this period. Five-year business projections are important to create for almost all business organizations because creditors typically want this type of information before lending money to a business. This report is also important for investors because it helps them to evaluate the actual potential of a business. This is an important document therefore it should explain all monthly protuberances for the first year of the plan and quarterly or yearly protuberances of two to five years. This is a good sheet template to help anyone quickly predict how well or badly a business is expected to perform over the next five years provided that it follows the usual path (predicted from past data).

Free Five-Year Projections Template

Check out the preview of our exclusive Five Year Projections Report Template:


5-Year Projections Report Template

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Tips to Prepare Five Years Business Projections

Five-year business projections can play an important role in the growth of your business so for your convenience I am going to share some important guidelines for five-year business projections:

Compile Background Information

Your every projection should be vindicated with chronological financial data and background research. If you have established a business then it is necessary to provide important financial data from the past three to five years for context. You have to include income statements, balance sheets, and cash flow statements for each fiscal year up to five years.

If you are commencing a new business then it is time to conduct research on the first step to get a backup for your monetary projections. For example, you can collect data from trade associations and speak to other people in the industry as a reference for your financial projections.

Prepare Income Statement Projections

You have to prepare income statement projections to present the total amount of returns you expect from your business and the everyday expenditure it will incur. It is necessary to list all income-generated sources and expenses. Try to estimate the amount of each item in each month on a quarterly or annual basis throughout the five-year outcrop period. In order to calculate net profit, you have to add income sources and revenue of the respective period and subtract expenses from income.

Prepare Balance Sheet Projections

You also have to design balance sheet projections to present the overall monetary position of the company through a specific period of time. Prepare a list of all company assets including cash, inventory, and accounts receivable, and a list of liabilities including accounts payable, accrued expenses, and sources of equity such as common stock and preferred stock.

You have to calculate the initial value of an asset, accountability, and all sources of equity in the first column of the balance sheet. In other columns, you can present the predictable worth of all these items right through the five-year protuberance period.

Prepare Cash Flow Projections

Cash flow projections are necessary to show the amount of cash inflow you expected in your company during a specific period of time and cash inflow over time. You can make your work easy by preparing a list of each source of incoming and outgoing cash. Have an estimate of the total amount of cash received and expenses incurred during five year projection period. Do not forget to mention the amount of cash that a company is anticipated to have at the beginning and end of the respective period.

Five-Year Projections FAQs

A five-year projection report is crucial for many reasons and it helps to track and manage strategic planning, financial planning, risk assessments, and performance monitoring.

Before creating 5-year projections, you should take into account several necessary factors such as historical data, market conditions, internal factors, assumptions, and sensitivity analysis.

A five-year projection report plays an important role in the decision-making process including strategic initiatives, risk management, performance evaluation, and investor communication.


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