Calculating Profit and Loss and Cash Flow Forecasts

Rapidly turn a business plan for sales, margins, overheads and investment into detailed profit; liquidity; cash flow; bank; tax and equity forecasts.

Calculating Comprehensive Business Forecasts

Planning and forecasting profits, cash flows, balance sheets and the bank is always important but thanks to the uncertainties that go with Brexit it is even more so for the average SME and their advisors.

Straightforward, easy to use, flexible and affordable this is what Figurewizard makes possible with the rapid creation of thirteen forecasts covering profits, liquidity, cash flows, balance sheets, the bank and equity plus three powerful calculators.

Nobody needs to learn how to use Figurewizard. All that is needed to produce the forecasts and calculator / planners are your projected annual sales, profit margin, overheads, the acquisition and sale of fixed assets, financial arrangements such as the overdraft limit and a few simple ratios.

No further input other than your predicted figures for one, two or three years ahead, ratios and the start date of the first financial year. VAT and corporation tax are automatically calculated from those figures and ratios and applied to forecasts by the system.

Forecasts include profit and loss, balance sheets, analysis of assets, liabilities and cash flows, month-by-month breakdown of cash flows, the bank and undrawn available facilities, year end operating plus net cash flow balanced against individual sources of external finance, the step-by-step calculation of corporation tax and and business ratios.

Up to a hundred complete sets of forecasts can be saved to  "My Account."  These can be retrieved for amendment or updating at any time. All forecasts can be exported to Excel for formatting and printing.

Calculating Variable Ratios

Variable overheads such as bad debts and cost of shippng orders are entered as % of sales.

Sales by month are entered as percentages of the year's total. For example January may represent 6% of annual sales, February 4%, March 7% and so on up to 100% .

Calculating Sales Ratios

Payment types for sales are also broken down as percentages of the year's total as 

  1. cash sales
  2. credit / debit card sales
  3. sales by open credit (created by default).

If sales by cash are expected to be 3% and sales by card 30% of the year's total, sales by open credit will be applied as 67%. 

Calculating Monthly Cash Collection

Details of cash collection for credit sales are simply entered as the percentages of invoicing you expect to be paid up by month as follows:

  1. Month 1 - Paid within the month invoiced
  2. Month 2 - Paid one month after the month invoiced
  3. Month 3 - Paid two months after the month invoiced

And so on up to 100%. Payments for purchases from suppliers of goods and overheads on open credit are entered in exactly the same way. Purchases by letter of credit (if used) are dealt with separately in the form.

The Input Forms

Entering proposed annual figures into the form should be a matter of ten minutes or so. The system will automaticlly calculate and apply all monthly values to arrive at the forecasts simply from those figures.

  1. Title; Start Date; no. of Years to Forecast -1 to 3 years
  2. Capital; Bank; Loans; Factoring / Supply chain finance
  3. Sales; Gross Profit Margin; % export sales
  4. Purchases; % as Imports
  5. Overheads and Expenses
  6. Values of Fixed assets Bought and Sold; % value of acquisitions financed
  7. B/Fwd Balance Sheet Values (summary) for going concerns

All are entered excluding VAT with the sole exception of the purchase of company cars, which are always entered including VAT. This is because VAT cannot be set off as input tax for cars. It does not apply however in the case of commercial vehicles which should be entered as part of "main pool assets".

The Forecasts

Despite its ease of use these are the forecasts and planners Figurewizard produces from your figures:

Cost of Goods Sold and Gross Profit Monthly Bank Balances and Cash Flows
Profit and Loss: Operating: Pre-Tax: Post-Tax Operating and Net Cash Flows
Balance Sheet Monthly Accrued Net Profit Charts
Overheads Anaslysis Monthly Break-Even Sales Charts
Assets and Liabilities Analysis Business Ratios - Liquidity
Fixed Assets - Depreciation; Net Book Values Business Ratios - Performance
Corporation Tax and Step with Step Computations Cash and Factoring Calculator and Chart
What-If Calculator / Planner Dividend Cash & Solvency Calculator / Planner

The What-If Calculator and Planner

A powerful planning tool and unique to Figurewizard, the What-If Calculator and Planner enables you to change your original input figures with single clicks of the mouse which in turn updates all of the forecasts in real time.

For example, you may choose to apply a reduction of 5% for overheads or change the gross profit margin from 41% to 42% or to increase the bank overdraft limit and loans.

As you make those changes the key elements of the forecasts which are displayed on the screen such as pre-tax profit, minimum / maximum months’ cash flow and the bank, working capital and net worth immediately update.

Dividend, Cash and Solvency Calculator

A new and important Year-End Dividend Calculator, illustrating how the value and payment dates of a dividend will affect cash, liquidity and solvency going forward has been added to Figurewizard.

The value of a proposed year-end dividend and date of payment are entered. That then returns a breakdown showing how the monthly bank balances, available and undrawn financing, such as loans and overdraft, working capital and solvency all instantly update.

Cash and Factoring / Supply Chain Finance Calculator and Chart

All you have to do here is to select the percentage of your sales on open credit you with to finance, the percentage service charge if applicable and the annual rate of interest.

Figurewizard then immediately updates all of the forecasts to include this new information to show how that will change the monthly accrued bank account olus available and undrawn financing from overdraft and the factoring facility itself.

Cash and Factoring / Supply Chain Finance also feature in both the What-If Caculator and the Dividend Planner.

All of the calculators work in real time. As you make changes the results to profits, balance sheets, cash flows, the bank and so will instamtly change too. This will include the automatic re-calculation of VAT, corporation tax and interest charges.

A Note for Visitors

The sample forecasts shown on the site are based on a single working example. There is a menu to take you to these at the top left of this screen.

Sample forecasts are fully interactive. Visitors are invited to make their own changes to the sample forecasts either by selecting "edit" which takes you to the forms' menus or better still using the powerful What-If Calculator to see for yourself exactly how Figurewizard makes it possible for you to properly calculate and plan your business's profits finances and performance going forward.

The Cost, Subscribing and Saving Forecasts

For registered users all forecasts are automatically saved to "my account". Up to one hundred full sets of forecasts can be saved. These can be retrieved at any time for amending or updating.

The subscription costs £30 p. a. There are no other charges.

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