FINANCIAL FORECAST & PROJECTIONS

Major assumptions are documented and organized by categories (such as customer growth, revenue sources, pricing, costs, payment terms, capital expenditures, and headcount). Most of the assumptions are placed on a single color-coded sheet so that you don’t have to hunt through formulas to figure out where a number came from. We will work with you to identify and quantify the assumptions and values that are most meaningful for your type of business.

All standard financial statements, including the income statement (Profit & Loss), balance sheet, and statement of cash flow.

We create three independently derived cash flow schedules (the standard GAAP Statement of Cash Flows, Cash Receipts & Disbursements, and Cash Sources & Uses). This makes it easier to see the data from new perspectives. Also, since each statement is independently created, we are able to implement robust error checking to verify the model’s integrity.

All cash flow calculations are done at the monthly level of detail. This is important for ensuring that your business raises enough capital to withstand cash flow spikes due to factors like inventory replenishment, slow accounts receivable cycles, large quarterly tax payments, major capital purchases, and other events.

Printed reports are quarterly for the first two years, plus annual for all five years. This is the level of detail most investors and lenders are comfortable with.

Operating expenses can be grouped by departments as appropriate for your industry. Typical departments might be General & Admin, Sales & Marketing, Research & Development, or Operations. This allows you to compare department expenses as a percentage of total expenses to other companies in your industry. This is one way to determine whether you might be over- or under-allocating resources to specific functions.