For example, an expense or cost of sales line item with a code of V1C0 in column A on the income statement would not form part of the trade payables calculations.
Note: If your business has no trade payables, you can simply enter a nil value in the creditors days assumption on the Assumptions sheet. The trade payables line on the balance sheet will then also contain nil values.
If you want to include variable monthly creditors days, you can do so by changing the creditors days assumption in the Workings section of the balance sheet which has been included below the section with the ratios. Simply replace the formula which links the creditors days assumption to the value on the Assumptions sheet by overwriting it with the appropriate creditors days value. The template accommodates the inclusion of sales tax in all relevant calculations based on four default sales tax calculation codes and any sales tax period.
All income statement and cash flow statement items need to be entered exclusive of any sales tax that may be applicable and the trade receivables and trade payables balances on the balance sheet will be calculated inclusive of sales tax. The net sales tax liability is included in the Sales Tax line on the balance sheet. Where there is no sales tax input which reduces the sales tax liability, the codes in column A on the income statement can simply be changed to contain a sales tax code in the first two characters of the code which has a zero percentage.
Only the sales tax codes that are included next to the turnover lines will then be included in sales tax calculations as required by some general sales tax calculations.
The appropriate sales tax percentages can be entered in the Sales Tax section of the Assumptions sheet. The template provides for 4 default sales tax codes, each with its own sales tax percentage. The sales tax codes are numbered from V1 to V4. The income statement contains codes in column A which affects the calculations of sales tax and trade receivables or trade payables. The first two characters of these codes determine which sales tax percentage is used in the sales tax calculations.
If an income statement item needs to be excluded from sales tax calculations, you should use a sales tax code with a zero percentage on the Assumptions sheet. Note: Each line on the income statement can therefore only be linked to one sales tax percentage.
If more than one sales tax percentage needs to be applied to the same income statement item, you need to split the income statement amount into two lines and enter the appropriate sales tax codes in column A for each of the lines. Note: If you are preparing cash flow projections for a business which is not subject to sales tax, simply enter zero percentages for all four sales tax codes.
The sales tax assumptions that need to be specified on the Assumptions sheet also include the frequency of sales tax payments in months and the calendar month of the first payment period. You can therefore calculate sales tax based on any period frequency from one to twelve months.
Example: If your business is subject to sales tax payments of every two months and the first payment is due in February, a frequency of 2 needs to be specified and the first payment month should be set to 2 for February. Similarly, if your business is subject to sales tax payments of every 6 months with payments due in March and August, the frequency should be set to 6 and the first payment month should be set to 3.
If your business is subject to monthly sales tax payment periods, the frequency should be 1 and the first payment month should also be 1. The Current or Subsequent setting in the Sales Tax section on the Assumptions sheet determines how the calculated sales tax amounts of the current period are handled. If you select the Current option, the sales tax amounts of the current period will be included in the calculation of the payment amount which is due in the particular month and the sales tax liability at the end of the payment month will be nil.
If you select the Subsequent setting, the sales tax amount of the current period is not included in the calculation of the payment amount and the sales tax liability at the end of the appropriate payment month will always include at least one month. Note: The Subsequent setting is usually the appropriate setting to use for sales tax purposes. The Current settings is more applicable to tax types which are subject to provisional tax.
Example: If you set a payment frequency of 1 month, first payment month of 1 and select the Current option, the sales tax liability on the balance sheet will always be nil because the current month's sales tax will be included in the sales tax payment.
If you have the same period settings and select the Subsequent option, the sales tax liability on the balance sheet will always include the current month's sales tax because the payment amount will be based on the previous month's sales tax. Note: The first payment month setting refers to the month of payment and not the sales tax period end.
There is a difference - a sales tax period may end in February with payment in March which means that the first payment month of the calendar year is actually January or month 1 if the payment frequency is two months. The payroll accrual on the balance sheet is based on the payroll accrual assumptions in the Working Capital section of the Assumptions sheet and the amounts in the staff costs section of the income statement.
If payroll deductions are paid in the same month as they are incurred, you can set the payroll accrual percentage to zero and the payroll accrual balances on the balance sheet will also be zero. Staff costs have been included in a separate section on the income statement to make it easier to calculate payroll accrual balances.
You can however include staff costs in operating expenses but you need to ensure that you also include the "PAY" code in column A for all the staff costs that you want to include in the payroll accrual calculations. You also need to specify the appropriate percentage of staff costs which needs to be included in your payroll accruals.
This percentage should be based on the percentage of staff costs which are paid in a subsequent month and is based on the current month's staff costs. You therefore need to calculate the appropriate payroll accrual percentage based on the composition of the salary or wage structures of all employees. The payroll accrual assumptions that need to be specified on the Assumptions sheet also include the frequency of payroll accrual payment periods in months and the payment month of the first payroll accrual period.
You can therefore calculate payroll accruals based on any payment period frequency from one to twelve months. The calculated payroll accruals are added together in the payroll accrual balance until the month of payment. Example: If you need to settle payroll accruals every two months and the first payment is due in February, a frequency of 2 needs to be specified and the first payment month should be set to 2 for February.
Similarly, if you settle payroll accruals every 6 months with payments due in March and August, the frequency should be set to 6 and the first payment month should be set to 3.
If you settle payroll accruals on a monthly basis, the frequency should be 1 and the first payment month should also be 1. The Current or Subsequent setting in the Payroll Accruals section on the Assumptions sheet determines how the calculated payroll accrual amounts of the current period are handled.
If you select the Current option, the payroll accrual amounts of the current period will be included in the calculation of the payment amount which is due in the particular month and the payroll accrual balance at the end of the payment month will be nil.
If you select the Subsequent setting, the payroll accrual amounts of the current period are not included in the calculation of the payment amount and the payroll accrual balances on the balance sheet at the end of the appropriate payment month will always include at least one month.
Note: The Subsequent setting is usually the appropriate setting to use for payroll accrual purposes. The Current setting is more applicable to tax types which are subject to provisional tax payments where payment occurs in the same month as the tax calculation.
Example: If you set a payment frequency of 1 month, first payment month of 1 and select the Current option, the payroll accruals on the balance sheet will always be nil because the current month's payroll accruals will be included in the payment calculation.
If you have the same period settings and select the Subsequent option, the payroll accruals on the balance sheet will always include the current month's payroll accrual because the payment amount will be based on the previous month's payroll accrual.
Note: The first payment month setting refers to the month of payment and not the payroll accrual period end. There is a difference - a payroll accrual period may end in February with payment in March which means that the first payment month of the calendar year is actually January or month 1 if the payment frequency is two months. If you want to include payroll accruals based on variable monthly payroll accrual percentages, you can do so by changing the payroll accrual percentage assumption in the Workings section of the balance sheet which has been included below the section with the ratios.
Simply replace the formula which links the payroll accrual percentage assumption to the value on the Assumptions sheet by overwriting it with the appropriate payment accrual percentage. The calculation of income tax on the income statement is based on the profit before tax on the income statement and the assumptions that are specified in the Income Tax section on the Assumptions sheet. The profit before tax amount is multiplied by the income tax percentage on the Assumptions sheet in order to calculate the monthly income tax value.
If there is a loss before tax on the income statement, no income tax will be calculated but if there were profits before the period with the loss, the income tax that was calculated in previous periods will be reversed in the period with the loss.
The template also makes provision for the inclusion of an assessed loss which has been carried over from previous financial periods and income tax will only be calculated after the assessed loss has been fully reduced by profits in the projection periods. The income tax assumptions on the Assumptions sheet also include the frequency of payment of income tax in months and the calendar month of the first income tax payment.
You can therefore calculate a provision for income tax based on any payment period frequency from one to twelve months. The calculated income tax amounts are added together in the provision for income tax balance on the balance sheet until the month of payment.
Example: If you need to settle income tax liabilities every six months and the income tax payments are due in February and August of each year, a frequency of 6 needs to be specified and the first calendar month should be set to 2 for February. Similarly, if you settle income tax liabilities at the end of each quarter with payments due in March, June, September and December, the frequency should be set to 3 and the first payment month should also be set to 3.
If you need to settle income tax liabilities 9 months after each year-end and the cash flow projection year-end is February, the frequency should be set to 12 months and the first payment month should be set to The Current or Subsequent setting in the Income Tax section on the Assumptions sheet determines how the income tax amounts of the current period are handled.
If you select the Current option, the income tax amounts of the current period will be included in the calculation of the payment amount which is due in the particular month and the provision for income tax balance on the balance sheet at the end of the payment month will be nil. If you select the Subsequent setting, the income tax amounts of the current period are not included in the calculation of the payment amount and the provision for income tax balance on the balance sheet at the end of the appropriate payment month will always include income tax for at least one month.
Note: The Current setting is usually the appropriate setting to use for income tax purposes if the entity is a provisional taxpayer which effectively means that income tax is paid in advance. If the entity is not a provisional taxpayer, the Subsequent setting should be used because income tax will be settled after being incurred. The calculation of dividends on the income statement is based on the profit for the year on the income statement and the assumptions that are specified in the Dividends section on the Assumptions sheet.
Dividends will only be calculated if you enter a dividend percentage on the Assumptions sheet - if you therefore do not want to include dividends in your cash flow projections, you can simply enter a zero value as the dividend percentage. The dividend percentage that is specified on the Assumptions sheet is applied to the profit for the year on the income statement which can be found directly above the dividends line.
Simple Cash Flow Forecast Template. Cash Flow Forecast Template. Daily Cash Flow Forecast Template. Quarterly Cash Flow Projections Template. Discounted Cash Flow Forecast Template. Nonprofit Cash Flow Projection Template. Personal Cash Flow Forecast Template. Creating a Cash Flow Forecast In order to set yourself up for success, you must be realistic when forecasting cash flows. A cash flow forecast may include the following sections: Operating Cash: The cash on hand that you have to work with at the start of a given period.
For a monthly projection, this is the cash balance available at the start of a month. Revenue: Depending on the type of business, revenue may include estimated sales figures, tax refunds or grants, loan payments received, or incoming fees. The revenue section covers the total sources of cash for each month. Expenses: Cash outflows may include your salary and other payroll costs, business loan payments, rent, asset purchases, and other expenditures. Net Cash Flow: This refers to the closing cash balance, which reveals whether you have excess funds or a deficit.
Accurate cash flow forecasting can enable you to do the following: Anticipate any cash-balance shortfalls. Verify that you have enough cash on hand to pay suppliers and employees.
Call attention to customers not paying on time, and eliminate cash flow discrepancies. Act proactively, in the event that cash flow issues will adversely affect budgets. Notify stakeholders, such as banks, who might require such forecasting for loans. Enter Variables Accurately: Inflows and outflows can change on a literal dime. This template is a useful tool for both investors and business owners.
This template is designed with nonprofit organizations in mind and includes some common income sources, such as donations and grants, as well as expenditures. The template covers a month period and makes it easy to see annual and monthly carryover so that you can track a rolling cash balance.
Create a detailed list of all receipts and disbursements that are relevant to your organization. Individuals can manage their personal cash flow with this free template. The simple layout makes it easy to use and provides a financial overview at a glance. Keep track of how you are spending money to gain more control over your financial habits and outlook. Use this trial balance template to check your credit and debit balances at the end of a given accounting period, and to support your financial statements.
The template shows ending balances for specific accounts, as well as total amounts for the activity period and the overall difference. This is a simple worksheet that you can customize to reflect your business type and the products or services it offers. Simply adjust your chosen template to fit your specific goals and the intended audience. Each template offers a clean, professional design and is intended to save you time, boost efficiency, and improve accuracy.
Just enter your financial data, and the templates will perform automatic calculations for you to analyze. By combining your cash flow statement with a balance sheet, income statement, and other forms, you can manage cash flow and get a comprehensive understanding of business performance. Smartsheet offers additional Excel templates for financial management, including business budget templates. A cash flow statement is typically divided into the following sections to distinguish among different categories of cash flow:.
New businesses trying to secure a loan may also require a cash flow forecast. You can build your projections on a foundation of key assumptions about the monthly flow of cash to and from your business. For instance, knowing when your business will receive payments and when payments are due to outside vendors allows you to make more accurate assumptions about your final funds during an operating cycle.
On a monthly basis, you can add another month to create a rolling, long-term projection. Keep in mind that while many costs are recurring, you also need to consider one-time costs. Additionally, you should plan for seasonal changes that could impact business performance, and upcoming promotional events that may boost sales.
Depending on the size and complexity of your business, you may want to delegate the responsibility of creating a cash flow forecast to an accountant. Projected cash flow statement template, All organizations, whether public, private, or nonprofit, need to prepare financial statements in their own performance to present financial accountability and accuracy for their own stakeholders and individuals with an interest in the business.
These statements allow management to generate business decisions, enable creditors to evaluate loan applications, and supply people with information to make investment choices. The income statement demonstrates how revenue earned the best line in the sales of merchandise and services before expenses are taken out, is transformed into the internet income bottom line , the end result after earnings and expenditures are accounted for.
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