A free site, Detailed profit & loss and cashflow forecasts are produced from your raw figures. VAT and corporation tax are automatically calculated - Includes unique chart planners which enable amending your forecasts online to get your business
Calculate plan and forecast profit and loss; cash flow, balance sheet, business ratios, analysis of overheads; assets, liabilities, VAT and tax; Free. A full set of reports for all of these are easily entered by you and automatically worked out by the system. The whole exercise takes just a few minutes to complete.
All forecast reports can be exported to excel and are printable. You can choose whether you want forecast one, two or three years ahead.
Up to ten full report sets can be saved for future amending or updating. Despite the fact that these would normally be expected to cost you hundreds, if not thousands of pounds this is a totally free site. We make our money from advertising from this website only. Your registration details are kept strictly confidential.
In addition to the reports two sets of unique business chart planners are produced; one for planning and forecasting profitability and another for planning and forecasting cash flow and liquidity. These are illustrated below. Each set contains one planner for each year.
To use them you can simply change any of the key figures that you originally entered and the values on the charts for profit and loss or cash flow change in real time. These changes are also applied to all of the other reports at the same time. The cashflow / liquidity planner includes a one click option to forecast the effects of adding factoring or invoice discounting to your business cash flow.
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You can view samples of all of the forecasts and try out the chart planners for yourself by clicking on 'view sample reports' on the home page.
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The reports automatically generated by our system are as follows: * Profit & Loss Forecasts You can save and retrieve up to ten sets of forecasts for amendment and updating. |
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You also have the option of selecting the following features if you want to discover how they might affect your business plan.
* Financing by Factoring or Invoice Discounting
* Buying by Letter of Credit – (important for cashflow if you purchase goods using these).
Figurewizard.com delivers the essential components of a successful business plan. Some of its specific technical features and a description of some of the terms used are described in detail below:
HMRC
Her Majesty’s Revenue and Customs
Balance Sheet
Your Balance Sheet shows the net value in the business which is the difference between its assets and liabilities. A balance sheet serves to show where the cash in the business came from and where it is now.
Liabilities are the sources of cash while assets show how that cash has been used. You can view a detailed breakdown of assets and liabilities in your Figurewizard report; ‘Analysis of Assets and Liabilities’.
Cashflow / Liquidity
Cashflow is simply the difference between the cash coming in and the cash going out of the business. If more is coming in than going out it is positive, if not it is negative. Figurewizard produces cashflow forecasts showing the position each month for up to three years ahead.
Liquidity is the sum of the cashflow plus any unused bank overdraft facilities and (if selected) factoring or invoice discounting funds that are available to be drawn down.
Liquidity is important because it tells you how much you have in hand for future commitments such as increased stocks or fixed assets. With figurewizard you can establish whether making them now will not cause problems in the months or even years ahead.
Corporation Tax
This is automatically calculated by our system. Payment is deemed to fall due ten months and one day from the end of your financial year.
Example:
If you select April as the start month for your reports, payment of the tax is made by the system in March of the following year.
Fixed Assets - Entering Figures
For all values (except for company cars) you select your figures excluding VAT; the system deals with all VAT calculations automatically. Only company car values are entered including VAT in order to comply with HMRC rules, which state that VAT on cars is not recoverable.
Fixed Assets are budgeted monthly so if you acquire £12,000 of computers excluding VAT in any year they are allocated to the forecast accounts at £1,000 per month. This rule applies equally to the sale of fixed assets.
Because of this all transactions associated with them, (i.e. Depreciation and Hire Purchase) are also budgeted. This is important for the purpose of accurate profits and cashflow forecasting. The examples below show what this means in practice.
Example
In the case of buying £12,000 (excl VAT) of computers in any year the system allocates them at £1,000 per month. Therefore the value of computers in month 1 will be £1,000 and in month 2 £2,000; building up to £12,000 by the end of the year. VAT transactions on these are treated in the same way by the system.
Therefore, assuming you opt for 33.33% depreciation the system allocates this in exactly the same way. As a result depreciation ion the first year does not add up to £4,000, which would be wrong. It actually adds up to £2,167. How this is calculated is shown as follows:
In month 1 depreciation = value of computers @ £1,000 x (33.33%/12) = £28.
In month 2 depreciation = value of computers @ £2,000 x (33.33%/12) = £56.
In month 3 depreciation = value of computers @ £3,000 x (33.33%/12) = £83.
And so on …………
Where computers are sold the value of the sales is again budgeted and the system sets these values off against acquisitions and adjusts values and depreciation in exactly the same way.
Fixed Assets – Hire Purchase
For Hire Purchase the system assumes a separate contract for each month’s budgeted figure. The system calculates the values for VAT (except in the case of Company Cars where the cost prices are always entered including VAT), and adds this on to the value of the contract automatically.
Example
Computers are purchased in year 1 for £10,000.
The system adds VAT of £2,100 to make a total of £11,1750
Repayment is to made over 20 months
12 separate monthly contracts for £979 are set up and applied in successive months.
Repayments are therefore £49 per month for each of the 12 contracts (i.e. £979/20)
This ensures a fully accurate cashflow budget for HP repayments over the period.
Note that repayments are not charged in the first month of each contract as it is normal for them to start one month after the contract has been made. The figures have been rounded up or down to the nearest £.
If you select any percentage greater than 0% in respect of Financing Fixed Assets by Hire Purchase you must also select % values for interest charges.
Fixed Assets - Sales
These are budgeted in the same way as the purchases of Fixed Assets. Our system automatically applies the sale of assets to both the Depreciation and Hire Purchase accounts and adjusts these accordingly.
Sales are applied to the oldest values first. Therefore if there are no sales in the first two years followed by sales in year 3 the system reads any balances on year 1 accounts for both Depreciation and Hire Purchase and applies the sales value to these. Any remaining values are then applied to year 2 and ultimately year3 if needed.
In the case of the value of the sale of assets being greater than that of their value b/fwd from the previous year plus the value of any acquired in the current year, the difference is shown as profit on the disposal of fixed assets in the Profit & Loss Account.
Hire Purchase
See ‘Fixed Assets – Hire Purchase’
Imports
See 'Purchases - Imports'
Net Worth
This is the value of your share capital plus profits after tax retained in the business. This figure is always equal to total assets less total liabilities.
Overheads - Entering Figures
You select your figures excluding VAT; the system deals with all VAT calculations automatically.
All overheads with the exceptions below are divided by 12 and allocated monthly. The exceptions to this are:
Provision for Bad Debts
Discounts Allowed
Cost of Delivery of goods to Clients
The three overheads above are charged as percentages of the monthly sales.
Example:
Sales in January are £12,000
Discounts Allowed are set at 2%
The monthly charge for Discounts is therefore allocated as £240.
Overheads – Operating
These are your overheads and expenses excluding interest charges for bank borrowings, loans and hire purchase. When interest charges are included this is referred to as total overheads.
Overheads – Interest Charges
The three interest charges covered by figurewizard are, bank, hire purchase and sundry loans. These are automatically produced by the system; therefore you are not required to enter their values yourself.
Profit – Gross Profit Margin
This is the percentage of your sales of goods or services which represent your gross profit; i.e. profit before deduction of overheads, expenses and interest charges. It is not mark-up!
Do not include any revenue from delivery charges you may make to your clients or any anticipated profits from the sale of fixed assets. The system deals with these separately.
Example:
You buy goods for £100
You sell them for £150
Therefore your gross profit is £50
And your gross profit margin is (£50/£150) x 100 = 33.33%
Profit – Trading Profit
This is the gross profit that you have earned from the sale of goods or services. It does not include any revenue from delivery charges you may make to your clients or profits made from the sale of fixed assets.
Profit – Gross Profit
This is the sum of all profits, which are trading profit plus revenue from delivery charges you may have made to your clients plus any profits from the sale of fixed assets.
Profit – Operating Profit
This is your net profit after deduction of all overheads and expenses except for interest charges from bank borrowings, loans and hire purchase.
Profit – Net Pre-Tax Profit
This is your net profit after deduction of all overheads and expense including interest charges - Before deduction of corporation tax.
Profit – Retained Profits
These are profits, after deduction of corporation tax, which have been retained in the business. Figurewizard assumes that all such profits are retained.
Profit – Taxable Profit
This is the net profit upon which corporation tax is to be charged. It may differ from the net pre-tax profit shown in your accounts in that the Revenue disregards the deduction of depreciation and substitutes its own capital allowances instead. These can often be better than the depreciation that you have charged.
Figurewizard calculates your corporation tax for you.
Profit – Profit on the Sale of Fixed Assets
If in any year the value of the sale of a particular group of fixed assets (i,e, Cars, Plant, Computers) is greater than its total net value in the books, the difference, which is calculated by the system is shown as a 'profit on the sale of assets'.
Purchases - Entering Figures
All values are calculated excluding VAT; the system deals with all VAT calculations automatically.
The system calculates the cost of goods sold for you. It also calculates the difference (movement) in the values of the stock you will have entered year on year to establish the total value of purchases. Monthly allocation of purchases is calculated by the system in exactly the same way as sales, e.g. January 6% etc.
Total purchases for the year equals the sum of the cost of goods sold plus the movement of year end stock.
Example
If you select a gross profit margin of 40% of sales for say year 2 where sales are £200,000, the cost of goods sold in that year is therefore 60% of sales or £120,000. You do not have to enter this percentage or any value for cost of goods sold as it is calculated for you by the system.
If also the value of stock at the end of year 1 is £10,000 and year 2 £15,000 the year end stock movement is +£5,000. This value is also calculated for you by the system.
Therefore purchases in year 2 are cost of goods sold + stock movement = £125,000.
And so, if January % of annual sales is set at 6%, January purchases in year 2 = £7,500.
Purchases – Imports
When you select the percentage of goods purchased from within the UK the system automatically assigns any balance to imports.
You are then asked for the percentage of imports that come from the EC. This is because there are two different VAT transactions involved. In the case of EC imports VAT is not payable but if the goods are imported directly from outside the EC VAT is payable. Although strictly speaking VAT is due at the point of importation it is usual for there to be a one month deferment and Figurewizard always assumes this to be the case.
Note that if you are importing goods manufactured outside the EC from an EC supplier who has imported them into their country beforehand, VAT is not payable as your supplier in this example will already have paid any such tax in their own country.
Purchases – Percentage of Imports as Freight and Duty
Import duty is not payable on goods from an EC supplier whether or not they are manufactured outside the EC.
If you are importing goods directly from outside the EC however it is likely that you will have to pay import duty. This is charged against the cost of the goods plus the cost of bringing them into the UK (freight) and the cost of clearing them through Customs. This last cost will be the administration charges made to you by your shipping agent.
The date at which the goods arrive at a UK port is known as the point of entry.
Figurewizard asks you for the average percentage of imports represented by freight duty etc. This is assumed to part of the cost of imports as advised by the system and payment for these items are assumed to have been made at the point of entry with the balance of the cost of the goods being payable according to your payment terms (e.g. 1 month; 2 months and so on).
Example:
Imports in say, January work out at £10,000
You select 5% as the costs of freight and import charges including duty
The system calculates these charges at £476
And the cost of the goods shipped by your supplier at £9,524
This is important for accurate reporting of cashflow as import charges are paid at the point of entry whereas the goods themselves will probably not be expected to be paid for right away.
VAT - When Entering Figures
You enter all of your figures excluding VAT with one exception - company cars. This is because HMRC rules state that VAT is not recoverable on these. Equally when it comes to selling company cars, VAT is not chargeable by you.
Figurewizard calculates all of your VAT transactions for you, including remittances to HMRC every three months.
VAT – Bad Debts
You are allowed to reclaim VAT on bad debts. Strictly speaking this can be done six months after the debt has been raised but it is good commercial practice to allow at least a year to try to recover a doubtful debt before writing it off. Therefore the system reclaims the VAT on bad debts automatically one year after they have been raised.
VAT - Exempt
Organisations involved in education and charity for example are exempt from VAT, as are some commercial operations such as selling insurance. You cannot reclaim VAT if your operations are principally engaged in exempt status activities although it may be possible to obtain partial exemption. Exempt status is a complex issue and requires specialist advice.
VAT – Imports
See Purchases – Imports
VAT – zero rated
The percentage you advise for sales which are exempt from VAT; (foodstuffs, children’s clothing, newspapers, magazines etc.) are also applied to the VAT for all purchases, including imports, by our system.
