What is known as a financial plan on a general level is often referred to as a financial forecast when dealing in business.  The idea is the same, to estimate future income and assets, but the scale is bigger.  The term financial plan is sometimes confused with the term financing plan which does not describe future income and assets, but rather the means by which the cash will be raised, such as borrowing or using saved money.

A financial forecast involves the use of the financial statements in the business plan.  The financial statements, also known as financial reports are the business' formal records of financial activities.  The four types of financial statements are balance sheet, income statement, statement of retained earnings and cash flow statement.  The balance sheet is sometimes called the statement of financial position or condition. It deals with assets, liabilities and net equity.  The income statement is also known as the P&L or Profit and Loss Statement.  It reports on the results of a company's results.  The statement of retained earnings reports the company's change in retained earnings.  The statement of cash flow discusses cash flow activities including operating, investing and financing.

The financial forecast also deals with the company's annual projection of income and expenses, as well as that of a division or department.  Lastly, a financial forecast can estimate how much money is needed and decide how to raise the funds.  Funds can be raised by borrowing or issuing additional shares in the company.