Excel Spreadsheets

One of the best uses of breakeven analysis is to play with various scenarios. For instance, if you add another person to the payroll, how many extra sales dollars will be needed to recover the extra salary expense? If you borrow, how much will be needed to cover the increased principal and interest payments? Many owners, especially retailers, like to calculate a daily breakdown. This spreadsheet is created to simplify the process, but not just a simple process. You can expand this spreadsheet to suit your needs.

One important part of managing company operational activities is managing the cash flow activities where an accountant or any people responsible in financial issue has to make sure that the company manage its cash flow properly and any department have to make sure that the company income and expenses is in balance. This spreadsheet is intend to guide you on this issue.

A balance sheet shows the financial position of your company at a single moment in time; in this case, it will be as of opening day. You can use your startup expenses to get the basic data for the balance sheet. Here are some accounting rules which will help you construct an accurate balance sheet: Assets are recorded at the lower of cost or current market value. Since your assets will be newly acquired, put them down at cost. If you have donated personal possessions to the business, enter them at market value.

Projecting your balance sheet can be quite a complex accounting problem, but that does not mean you need to be a professional accountant to do it or to benefit from the exercise. The desired result is not a perfect forecast, but rather a thoughtful plan detailing what additional resources will be needed by the company, where they will be needed, and how they will be financed. Using your last historical balance sheet as a starting point, project what your balance sheet will look like at the end of the 12 month period covered in your Profit & Loss and Cash Flow forecasts. How will the year’s operations affect assets, debts and owners’ equity? For example, if you are planning significant sales growth in the coming year, go through the balance sheet item by item and think about the probably effects of assets.