This is a Working Example of our Forecasts
Registered users can produce their own business forecasts in minutes; exactly as is shown here.

Report name: Sample Forecast

What-If Profit and Cash Flow Planner

With single clicks increase or decrease your original figures to revise profits liquidity, cash flows, equity and financing. Try it yourself here.

  Was New   Was New
Gross Profit as % Sales 41% New Paid-Up Capital 0
Delivery / Service Income as % of Sales 2.5% Bank Overdraft Limit 50,000
Increase / Decrease Wages 300,000 New Loans 0
Increase / Decrease Fixed Overheads 130,000 Loan Months to Repay 1

Change % of Sales Entered - Carriage Out

4% New Main Pool Assets 30,000

Change % of Sales Entered - Bad Debts

3% New Company Cars 25,000
Increase / Decrease Year-End Stock 125,000 % Fixed Assets Financed 70%
Factoring / Invoice Discounting
  Was New   Was New   Was New   Was New
Factoring selected No % of Invoices 80% Service Charge 1% Interest 5%

Profits, Overheads and Stock / Inventory

Cash, Bank and Solvency

  Before After Plus / Minus   Before After Plus / Minus
Operating Profit 99,443 99,443 0 Operating Cash Flow 12,208 12,208 0
Pre-Tax Profit 94,381 94,381 0 Net Cash Flow -53,854 -53,854 0
Wages 300,000 300,000 0

Bank @ Year End

-35,439 -35,439 0
Fixed Overheads 130,000 130,000 0

Min Month Bank + Undrawn Financing

-16,263 -16,263 0
Total Operating Overheads 553,057 553,057 0

Max Month Bank + Undrawn Financing

54,920 54,920 0
Interest Charges 5,062 5,062 0 Working Capital / Liquidity 63,022 63,022 0
Year-End Stock / Inventory 125,000 125,000 0 Capital & Reserves 105,768 105,768 0

Monthly Accrued Pre-Tax Profit

Month-End Bank + Undrawn Financing


How the What-If Planner Works

At times like Brexit a flexible and rapid real-time calculator to update forecast profits, liquidity and cash flow forecasts with the Figurewizard What-If Calculator has become essential.

To begin with, using Figurewizard you will have produced profits, balance sheets, cash flow and liquidity forecasts simply by entering your predicted sales, profit margin, overheads, investment and a few simple ratios. Taxes including VAT and corporation tax will have been automatically calculated and applied by the system from those figures.

So far so good but it is likely that changes will be called for as the year progresses. That is what the What-If Calculator makes possible, literally in seconds.

For example if you just select reducing fixed overheads, say by 5%, everything; profits, liquidity, cash and equity will be instantly re-calculated and displayed for you. That includes VAT and corporation tax which will also have been re-calculated and applied.

What-If Planning Profits

All it takes when planning profits is to increase margin or reduce overheads with single clicks and operating, pre-tax and taxed profits instantly update.

It's important to know that despite the fact that updates for profits or anything else take place in real time they will have been completely revised as will liquidity, the bank and usage of financing. That also includes updated VAT and corporation tax values: Nothing is left out.

What-If Cash Flow and Budgeting

Without question the most important of the forecasts included in the calculator will be that for Min Month Bank + Free Facilities. If that one item is in the red your budgets and therefore your business plan will be signalling a cash flow crisis.

This represents the bank account plus undrawn overdraft facilities and unused  and available cash from a factoring / supply chain finance account if that has been selected. Overheads, year-end stock and investment in new fixed assets are the three key elements for change to improve cash flow - Especially overheads.

Increasing the gross profit margin can also do this job but that can represent an ambitious and possibly risky solution. It is always best to cut costs first in order to head off cash flow deficits.

What-If Financing and Cash Flow

An alternative solution to cash flow deficits is to increase financing options but that can only be a short term remedy.

Most businesses are seasonal so financing will sometimes have to be called upon to cover costs during the quiet periods. The ultimate objective though should be to ensure that the business can generate the cash flows to support its trading operations with sustainable finance reserved principally for investment rather than for paying the rent or wages.

That is why this What-If planner is important - There are costs in every business plan that can be that can be reduced or delayed until such time as the trading operations of the business are financially self-sufficient. All you need to do here is ask "how much" and it will give you get instant answers for everything.

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