This template would work for a CPA or law firm or any kind of organization that has professionals billing clients for hourly work and taking a portion of those billings as revenue. The consultants or professionals are happy to give some of their earnings away for the steady stream of client work.
There is some unique revenue logic in this model that I have not done in any other build before. It allows for the user to account for attrition of new hires as well as the new hires slowly building up to a monthly quota of billed hours. For example, you can define an average hire as having a tenure of 8 years and reaching their quota of hourly billings after 5 months of being hired. The percentage they get closer to a full 100% quota can be as granular as needed. For example, 20% in month 1, 25% in month 2, and so on. This works dynamically depending on the new hires in each new month.
The main revenue driver runs off the count of hires for up to 3 different earning categories. For ease of use they are just called ‘low, medium, and high’ but this is how you can plan for different types of professionals with different rate ranges. A percentage filed will populate for the amount of new hires that fall into each of the three categories.
There is fixed expense logic designed to flow based on a start month and monthly amount in each of the 5 years as well as variable expenses based on the total number of professionals working at the end of a given month. i.e. coffee or lunch per professional per month.
There is logic to account for debt from a bank, funds from investors, and funds from owners. There is a DCF analysis for the project, for the investors, and for the owners. If you don’t plan on having debt funding or investor funding then that can be zeroed out.
A monthly and annual detail is included as well as an executive summary to see high level financial performance. A separate distributions tab has the cash flows to all pools as well as NPV (net present value) and IRR (internal rate of return) calculations for each pool.