Financials and Cash Flow Creating a cash flow projection In less than an hour a month, you can identify potential cash shortfalls — and surpluses — in your business's future. August 29, Tags:
How to use Financial Plan Model Inputs Use the Model Inputs sheet to enter information about your business that will be used to model results seen on the other pages.
Forecasted Revenue The forecasted revenue section allows you to estimate your revenue for 4 different products. Simply use the white boxes to enter the number of units you expect to sell, and the price you expect to sell them for, and the spreadsheet will calculate the total revenue for each product for the year.
If you want to give your products names, simply type over the words "Product 1", "Product 2" etc. Cost of Goods Sold Your margins are unlikely to be the same on all of your products, so the cost of goods sold allows you to enter your expected gross margin for each product into the white boxes in Column B.
The spreadsheet will automatically calculate the annual cost of goods sold based on this information, along with your forecasted revenue. Annual Maintenance, Repair and Overhaul As the cost of annual maintenance, repair and overhaul is likely to increase each year, you will need to enter a percentage factor on your capital equipment in the white box in Column B.
This will be used to calculate your operating expenses in the profit and loss sheet. Asset Depreciation Use the white box to enter the number of years you expect your assets to depreciate over. This may vary greatly from business to business, as assets in some sectors depreciate much more quickly than they do in others.
Tax In most parts of the world, you will have to pay income on your earnings. Enter the annual tax rate that applies to your circumstances in the white box in Column B.
If you have to pay any other taxes, these can be entered later on the Profit and Loss sheet. Inflation Although you cannot be certain of the level of inflation, you will still need to try and plan for it when coming up with a 5-year financial plan. The International Monetary Fund provide forecasts for a number of countries, so is a good place to look if you are unsure what to enter here.
Simply enter your inflation rate in the white box. Product Price Increase As a consumer, you are no doubt aware that the price of products goes up over time. Enter a number in the white box to show the expected annual price increase of your products to enable the spreadsheet to calculate income in future years.
If you are unsure what to put here, increasing your product price in line with inflation is a good starting point. If your business is just starting out, you may be able to command higher prices for your products or services as the years go on, as you build up brand recognition and a good reputation.
Funding The funding section allows you to enter information about your business loan. To use this section, simply fill in the three white boxes representing the amount of the loan, the annual interest rate and the term of the loan in months - for example, 12 for 1 year, 24 for 2 years, 36 for 3 years, 48 for 4 years, or 60 for a 5 year loan.
Profit and loss This sheet calculates your profit and loss for each year over a 5 year period.
The profit and loss assumptions, along with income, are automatically calculated using information entered in the model inputs sheet. Non-Operation Income You may have, or be expecting some income in addition to your operating income. There are pre-entered categories for rental, lost income and loss or gain on the sale of assets, as well as an additional row where you can enter your own non-operation income.
Operating Expenses Some parts of this are already filled in based on information you put on the Model Inputs, for example, depreciation, maintenance and interest on long-term debt. Years are also filled in for you across all categories based on the inflation information entered in the Model Inputs sheet.
Non-recurring Expenses This section is for entering any expenses that you will not be paying on an annual basis. The Unexpected Expenses row allows you to enter a contingency for unexpected expenses, whilst the Other Expenses row allows you to enter any other one off expenses you may be expecting to make, for example the purchase of new equipment part way into your 5 year plan.
Taxes Income Tax is filled in based on the information you enter into the model inputs. Depending on where your business is based, you may find yourself having to pay other taxes.
These can be entered in the Other Tax row. You can rename this row by typing over the "Other Tax specify " text. Balance Sheet The annual balances for Years are, in most cases, filled in for you, based on the information you have entered on the Model Inputs sheet and in the Initial Balance column of the Balance Sheet column itself.This template enables users to create cash flow projections for a business plan which includes 12 monthly periods and 5 annual periods.
The template includes a detailed income statement, cash flow statement and balance sheet. EXAMPLE: On January 2 (as a New Year's resolution), Emme starts work on a cash flow projection for the next 12 months.
She starts by putting the $5, she has in her business bank account in the "Cash at Start of Month" column for January. May 21, · The projected cash flow is what links the other two of the three essential projections, the projected profit and loss and projected balance sheet, together.
The cash flow completes the system. It reconciles the profit and loss with the balance sheet. There /5(20). Standard Business Plan Financials: How to Project Cash Flow Tim BerryTim Berry No matter what your business planning objectives, cash flow is still the most vital resource in the business, and managing cash is the single most important business function.
Business plan cash flow projection template ariel assistance and for small example sample exce. View. Business projection plan sample financial projections ppt income and View.
Business plan projections template best of cash flow projection sales. A cash flow projection, also known as a cash flow forecast, is a set of financial statements that project the cash flow, or rather, the movement of cash in and out of your business, an organization, or an individual, over a given period.