The key components of a financial forecast include:
A profit and loss forecast: this is used to project your business's income, expenses and profitability over a given period (usually 3 or 5 years).
A balance sheet forecast: this statement estimates the financial position of your business at a specific point in the future. The balance sheet helps in assessing your company's financial health, liquidity, and solvency.
A cash flow forecast: this financial statement focuses on the timing and amount of cash inflows and outflows. It helps determine whether your business will have sufficient cash to meet its obligations and fund its operations. The cash flow is derived from the other 2 statements above.
As you can see a financial forecast has 3 elements at its core, which is why we often talk of 3-way forecasts.