PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for a startup or existing Consultancy business generating revenue from providing consultancy/advisory services and any other ancillary income.
The model follows best practice financial modeling principles and includes instructions, line item explanations, checks and input validations.
The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet, and Cashflow Statement) presented on a quarterly basis across up to 5 years and summarised on an annual basis.
– Dashboard with:
o Summarised projected Income Statement and Balance Sheet;
o Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
o List of key ratios including average revenue growth, average profit margins, the average return on assets and equity and average debt to equity ratio;
o Bar charts summarising income statement and Balance Sheet projections;
o Chart presenting averages revenue mix and gross profit by revenue category;
o Gross profit by revenue category.
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.
– Name of business;
– First projection year and quarter;
– Naming for revenue categories, other income, variable costs, staff cost, fixed costs, fixed assets, and borrowings;
– Sales tax applicability for revenue and cost categories;
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);
– Revenue inputs including
o Number of FTEs
o Fee per Hour
o Working hours taking account of annual leave and public holidays
o Utilization rates
o Average settlement period for revenues
– Other income inputs including
o Revenue per unit
– Staff cost inputs including:
o Gross salary by annum;
o Employer’s social security;
o Average annual bonus;
o Bonus payment months.
– Other inputs including
o Variable costs
o Marketing costs
o Other costs
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount or percentage of retained earnings and frequency;
– Fixed Assets including addition amounts and useful life;
– Borrowings including addition/redemption amounts and interest rate;
– Share Capital additions.
The model comprises of 9 tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’) and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup’, ‘i_Actuals’, and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projected outputs which are presented in ‘o_Fin Stats’, ‘o_Charts’, and ‘o_DCF’.
System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– A Checks dashboard containing a summary of checks by tab.
Other key features of this model include the following:
– The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model is not password protected and can be modified as required following download;
– The model is screened using specialized model audit software to help ensure formula consistency and significantly reduce the risk of errors;
– The model contains a dynamic timeline that allows for a mix of actual and forecast periods across a 5-year period allowing projections to be rolled forward from month to month;
– Timeline is split on a monthly basis and summarised on an annual basis;
– Apart from restaurant revenue, the model allows the user to model 5 additional income categories and their related costs;
– Costs are split into: variable and fixed for better driver-based forecasting;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Revenue categories – 10 types;
o Other Income – 5 categories
o Variable costs – 5 categories
o Staff costs – 10 categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed Assets – 5 categories;
o Borrowings – 3 facilities;
– Apart from projecting revenue and costs, the model includes the possibility to model account receivables, fixed assets, borrowings, dividends, corporate tax, and sales tax;
– The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
– Business Name, currency, starting projection period are fully customizable;
– Revenue, Cost, Fixed Asset and Borrowing category descriptions are fully customizable;
– The model includes instructions, line item explanations, checks, and input validations to help ensure input fields are populated accurately;
– The model includes a checks dashboard that summarises all the checks included in the various tabs making it easier to identify any errors.
If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us on: [email protected]
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