PURPOSE OF MODEL
User-friendly Excel model intended for the preparation of a 3 statement (Income Statement, Balance Sheet, and Cash flow Statement) 5-year financial projection for a generic start-up business. The model follows best practice financial modeling principles and includes instructions, line item explanations, checks, and input validations

KEY OUTPUTS
The model is generic and not industry-specific. The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) on a monthly basis across 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 metrics including Average revenue growth, Average profit margins, Average return on assets and equity, and Average Debt to Equity ratio.
o Bar charts summarising income statement and Balance Sheet projections
o Gross Profit margin by revenue stream in table and bar-chart format

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. All inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.
Income Statement inputs include:
– Revenue inputs including sales volume, sales prices, and average credit terms offered;
– Variable cost inputs including variable cost per unit and average credit terms received;
– Other Costs including staff costs, marketing costs, and fixed costs;
– Sales and Corporate tax inputs including rate and payment periods;
– Dividend inputs including amount or percentage of retained earnings and frequency;
Balance Sheet inputs include:
– Fixed Assets including additional amounts and useful life
– Borrowings including addition amounts and interest rate
– Share Capital including initial and subsequent equity investments

MODEL STRUCTURE
The model contains, 7 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’ and ‘i_Assumptions’). The calculation tab use the user-defined inputs to calculate and produce the projection outputs which are presented in ‘o_Fin Stats’ and ‘o_Charts’
System tabs include:
– A ‘Front Sheet’ containing a disclaimer, instructions, and contents;
– A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
– The model follows best practice financial modeling guidelines and includes instructions, line item explanations, checks, and input validations;
– The model allows for a 5-year projection on a monthly basis and summarised on an annual basis;
– The model is not password protected and can be modified as required following download;
– The model is reviewed using specialized model audit software to help ensure formula consistency and significantly reduce the risk of errors;
– The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Revenue – 10 categories;
o Variable costs – 2 per revenue category;
o Staff costs – 5 categories;
o Marketing costs – 5 categories;
o Other expenses – 15 categories;
o Fixed Assets – 3 categories;
o Borrowings – 1 facility;
– Costs are split into: variable, fixed, staff, and marking costs for better driver-based forecasting;
– Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends, sales tax, and corporate tax;
– Business Name, currency, starting projection period are fully customizable
– Revenue, Cost and Fixed Asset descriptions are fully customizable;
– The model includes the possibility to start mid-way through the first projection year;
– 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.

MODIFICATIONS
If you require any bespoke modifications to the tool, we are more than happy to assist with this. Please contact us at: [email protected]