Supporting Documents In addition to the business plan, provide whatever supporting documents that your loans or economic development officer requires. You may some of these or more, it will depend on whats required. Note: Provide copies of the documents; keep the originals in your records. Required Yes No Copy of the parternership agreement … Read more
Business Venture Feasibility: The Return on InvestmentQuestion: “Is it worthwhile?” Now that you have determined sales, costs, and profits, you are in a position to take a hard look at the venture. There are two things in particular that you should look for: The minimum value of the total sales you will require to … Read more
Projected Balance Sheet Historical Projected Year 1 Year 2 Opening Year 1 Year 2 Year 3 Assets Current Cash and bank accounts Accounts receivable Inventory … Read more
The balance sheet is one of three financial statements that communicate the financial health of the business. The other two are the cash flow statement and the income statement. What is a balance sheet? The balance sheet is a snapshot of the financial position of a business at a particular point in time – as … Read more
Cash Flow Statement Sample Cash Flow Projection Month 1 2 3 4 5 6 7 8 9 10 11 12 Total Cash receipts Cash sales Accounts receivable … Read more
Cash Flow Projection Cash Flow Projection Year 1 Year 2 Year 3 Cash receipts Cash sales Accounts receivable Loan proceeds Other cash receipts Sale of assets Other contributions (SBA) Cash equity … Read more
The Cash Flow Budget vs The Income and Expense Statement There is a basic distinction between a monthly cash flow budget and the monthly income and expense forecast. The monthly cash flow statement shows all cash receipts the business expects to receive from every source and all cash payments the business expects to make. The … Read more
Projected Income Statement Projected Income Statement Historical Year 1 Year 2 Year 3 Sales Cost of goods sold Gross margin (sales – cost of goods sold) Expenses Business support Advertising & promotion … Read more
Depreciation Depreciation is defined as the estimated amount of time a fixed asset decreases in value over the estimated useful life of the asset. Depreciation is computed annually, for tax and accounting purposes. There are different ways to calculate depreciation. Two widely used methods are 1) The straight line method and 2) The declining method … Read more
Preparing the Income Statement The items contained in a typical projected income statement are listed below along with explanations on how to calculate the more complicated items. Assumptions Sales Start your financial projections by forecasting the sales of your product or service. Sales forecasting is extremely important so always make realistic estimates. Review your market … Read more