PURPOSE OF TOOL
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a generic new or existing business. The model also incorporates a discounted cash flow valuation calculation using the projected cash flows.
The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations.
The model is generic and not industry-specific. The key outputs include:
– Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for any of the 3 scenarios, presented on a monthly 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, 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
– Discounted cash flow valuation using the projected cash flow output.
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 month;
– Naming for revenue streams, variable costs, staff costs, other expenses and fixed assets;
– Sales tax applicability for revenue streams, variable costs, other expenses and fixed assets.
– Opening balance sheet (for existing businesses);
– Income Statement actuals (for trend analysis);
– Revenue inputs including sales volume, sales prices and average credit terms offered;
– Cost of goods sold included percentage of revenue, safety stock percentage and average credit terms received;
– Variable cost inputs including % of revenue applicable to and cost percentage of revenue
– Other costs inputs including staff costs, marketing costs and fixed costs;
– Sales and corporate tax inputs including rate and payment periods;
– Dividend inputs including amount (percentage of retained earnings) and frequency;
– Fixed Assets including addition amounts and useful life;
– Borrowings including addition amounts and interest rate;
– Share Capital additions;
– Discount rate inputs (for valuation calculation).
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 projection 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 good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
– The model contains a flexible timeline that allows for a mix of Actual and Forecast period across a 5-year period. This allows projections to be easily rolled forward;
– Timeline is split on a monthly basis and summarised on an annual basis;
– The model allows the user to model 3 separate revenue streams on a Price x Volume 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 risk of errors;
– Costs are split into: variable and other costs 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 streams – 10 categories;
o Cost of goods sold – 1 category for each revenue stream (10 categories in total);
o Variable costs – 5 categories
o Staff costs – 8 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 tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
– Business Name, currency, starting projection period are fully customizable;
– Revenue, Cost and Fixed Asset descriptions are fully customizable;
– The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
– 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]
We are also always keen to receive feedback so please do let us know what you think of our products/offering by sending us a message or submitting a review.
My first review noted the difficulties I had altering the model to fit around my financial data, but after posting that review, the company contacted me and worked to customize the model template exactly to my needed specifications! They were very quick to communicate and kept in touch with me on a daily basis so as to make sure the finished product was an EXACT fit to what I needed. Great company, and awesome model once you get it set up to your needed specifications. Thank you guys for all the hard-work and unbelievable customer service. Definitely would recommend using this company’s models, they will go above and beyond to make sure you accomplish whatever you may need.
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I was very excited when I came across this template and purchased it due to it’s professional and clean appearance, as well as the level of detail and insight it appeared it would provide. However, I was gravely disappointed in how difficult the creator(s) made it for users that may need to add more categories in certain areas. In fact, it was so difficult to even add enough product line categories, that I’ve decided to not even implement this model despite having already purchased the full excel version. Overall impression: don’t bother unless it is a cookie-cutter fit for the company you are modeling. If you will need to make adjustments, it will be more time consuming than it will ever be worth.
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