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 What-If planner calculates changes to forecast profit, liquidity, cash and equity including corporation tax and VAT: 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

You have entered your forecast budgets for sales, profit margin, overheads, investment and finance and Figurewizard has produced your forecast profit, balance sheet, liquidity and cash flows in return. So far so good but initially at least it is likely that you will want to make some changes.

That is what this unique What-If calculator and planner is for. As you make changes  to your original budgets, all of your forecasts are updated and displayed in real time.

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

What-If Cash Flow and Budgeting

Without question the most important of the forecasts 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.

How to calculate liquidity and short-term liquidity How to calculate markup and margin The Truth about Monarch Airlines Labour's Spending over 10 years from 2000 How to make profits and not run out of cash Credit Checking - How to Read Micro or Short Form Accounts Amortisation of Arrangement Fees for Long Term Loans BHS Profits Performance 2010 - 2014 BHS profits, liquidity and cash flows 2009 - 2014 How to Calculate a Free Cash Flow Forecast Campari: How to apply for a bank business loan What are Current Liabilities What are Current Assets Late Payers and Cash Flow What is Operating Cash Flow What is Working Capital How to Read a Balance Sheet Business Planning Cash Flow Calculator Short Term Liquidity Business Liquidity Corporation Tax is not Calculated on Net Profit Small Business Corporation Tax Cash Flow Calculator Using Figurewizard - VAT Using Figurewizard - Sales by Month Using Figurewizard - HP or Instalment Plan Budgets Using Figurewizard - How the budgeted cash flow forecast is calculated Using Figurewizard - Fixed Asset Budgets Using Figurewizard - Calculate Purchase of Goods Using Figurewizard - Forecasting Payments to Suppliers Using Figurewizard - How to Forecast Cash Collection Solvency and the Balance Sheet Property in the Balance Sheet Why Equity is a Liability Asset Management and Liquidity Selling Fixed Assets Contracts: Invitation to Treat What is Deferred Income Loss on the Sale of Fixed Assets Calculating Gross Profit Margin Profit and Loss Statement What is Operating Profit What is Net Operating Revenue What is Equity Profit on the Sale of Fixed Assets How Taxable Profit is Calculated What are Operating Overheads Overheads - Provisions Depreciation