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Financial Tables

FINANCIAL TABLE 1 Schedule of Personal Drawings

Owner’s Drawings

FINANCIAL TABLE 2 Personal Net Worth

FINANCIAL TABLE 3 Supplies Mix

Cash Supplies Credit Supplies Payments Cash Supplies Credit Supplies Payments

FINANCIAL TABLE 4 Establishment Costs

Total Depreciation

FINANCIAL TABLE 5 Cash Flow Forecast

Other Income All ‘Cash Outflow” items Tax Payable

FINANCIAL TABLE 6 Profit and Loss Projection Loan Repayments

FINANCIAL TABLE 7 Balance Sheet

FINANCIAL TABLE 8 Source of Funds

this calculation is done for you. Subtracting your total expenses from your total income. 5.FINANCIAL TABLE NOTES SCHEDULE OF PERSONAL DRAWINGS (Financial Table 1) The Schedule of Personal Drawings provides an overview of your personal income and personal expenses over the period of one year. This is simply a statement of personal income and is divorced from the business finances. Total Expenses’ is the sum of all the expenses recorded for each month. Use the following steps as a guide: 1. Do not record any money that you intend to take out of the business. Only these figures should be transferred to your Cash Flow Forecast (Financial Table 5) as a drawing from the business. the amount of money you will need to take out of the business in order to meet your personal financial commitments. this calculation is done for you. In the months where your income is expected to be greater than your expenses. ‘A. ‘Variable monthly expenditure’. shares or bank accounts • Other income . gives a figure which represents your proposed drawings.other money that you receive as a family unit. 2. ‘Fixed infrequent expenditure’ and ‘Variable infrequent expenditure’ for each month in the appropriate column. Record ‘Income’ received from: • Government allowance . child allowances. Page 1 . ‘Proposed Drawings’ are the monthly figures where the anticipated income is less than the anticipated expenses (B-A). If you are working on the computer version of the table. that is. and casual work. ‘B. Total Income’ is the sum of all the income received for each month. partner’s earnings. Record ‘Expenses’ for specific items of ‘Fixed monthly expenditure’. If you are working on the computer version of the table. Do not use average figures. you do not have to draw supplementary money from the business. 3. 4. this calculation is done for you. for example.income that you receive from invested money.income from any scheme in which public monies are used to assist business • Interest . which is not directly associated with your business for each month in the appropriate column. If you are working on the computer version of the table.

For example. it is essential that you include every item. and which can. if necessary. personal net worth means the difference between what you own or your assets. Page 2 . this calculation is done for you. this calculation is done for you. insurance policies. be converted quickly into cash. cash in bank accounts. Examples of personal assets may include your car. It should be noted that a Statement of Personal Net Worth is only correct for the date on which it is prepared. house. and therefore forms the basis for all the other financial documents relating to your business. may result in you drawing insufficient funds to cover your personal commitments. 4. only include those assets which have a reasonable value.000 (liability). Examples of personal liabilities may include your mortgage. if you own a house worth $85. and so on. and so on. List all of your personal liabilities in the spaces provided under the heading ‘LIABILITIES’. Calculate ‘TOTAL (B)’ by adding all of the liabilities listed. If you are working on the computer version of the table.000. 1. before attempting to complete any subsequent financial tables. When listing your assets. 2. and what you owe or your liabilities. personal possessions. Failure to note expenses. STATEMENT OF PERSONAL NET WORTH (Financial Table 2) In monetary terms. but have a mortgage of $50. 3. List all of your personal assets in the spaces provided under the heading ‘ASSETS’. Calculate ‘Personal Net Worth’ by subtracting ‘TOTAL (B)’ from ‘TOTAL (A)’. share investments. Calculate ‘TOTAL (A)’ by adding all of the assets listed. furniture. It is essential that you determine your supplies mix for the first twelve months of business. in particular. as any changes in income or expenditure may alter the assets and liabilities listed. SUPPLIES MIX (Financial Table 3) The Supplies Mix is a financial representation of your market research and your marketing plan. Personal net worth is also referred to as personal equity. this calculation is done for you. Use the following steps as a guide to completing Financial Table 2: Statement of Personal Net Worth. unpaid bills. If you are working on the computer version of the table. credit card debts.000 (asset). If you are working on the computer version of the table.When listing your personal income and expenses. 5. then your personal worth or equity is $35. personal loans.

taking into account any possible seasonal variations (eg. the calculations are done for you. The ‘Total supplies – Less GST’ row is simply the number multiplied by the selling price. or simply an hourly rate (eg. then you should record $500 in the ‘Cash’ row for the current month and $500 in the ‘30 days’ row in the following month. such as school and other holidays. a complete service. Determine what the first ‘Item or Service’ is to be. determine whether it is to be calculated by items (eg. When you have made the entries to the title line. if they are likely to have an effect on the business. use the same procedure. if your total sales for the first month are $1000 and you determine that 50% will be cash and 50% will be 30 days credit. and so on. you will need to determine the following: • • • • the products/services to be supplied the number of items (products/services) supplied per month the selling price for these products/services the tangible costs which can be directly related to the number of items (products/services) supplied A Supplies Mix is generally completed for a 12 month period of business trading. then determine the money value that will be received each month. 2. If you are working on the computer version of the table. If you are 3. If you are giving credit. 6. The ‘Credit supplies payments’ row is simply adding the credit supplies for each month. as this will be the basic element of the business. If there are likely to be variations in the cost. or per hour. business growth. $15 per hour for house cleaning). for example. 1. For example. Enter the ‘Selling Price’ and note whether it is an item. Page 3 . then use one that could be applicable for the majority of work. then you will need to ‘unprotect’ the worksheet by selecting ‘Tools’ and then ‘Protection’ followed by ‘unprotect sheet’. this calculation is done for you. ‘Hours per month’. In the ‘Number sold per month’ row. You should alter the title line to reflect this decision. 7. If you are working on the computer version of the table. mowing the lawn). lawns do not need to be mowed as often during the winter months). ‘Total Monthly Supplies’ is the sum of all the ‘Total supplies – Less GST’ amounts. Use the following steps as a guide. Enter your predictions. 5. if you wish protect the worksheet again. the number of books sold). a complete service (eg. NOTE: If you are working on the computer version of the table. and other influences. 4.In order to complete your Supplies Mix (Financial Table 3).

and enter this amount in the column headed ‘Total Value’. or ‘To be Purchased’ – if this money will have to be borrowed. this calculation is done for you. insurance. If you are working on the computer version of the table. Then total these amounts for each item. Estimate the amounts and allocation of ‘Working Capital’ required to commence business operations. estimate its ‘Value’ – if it is already owned (enter this amount in the column headed ‘Owned’). Page 4 . or ‘Cost’ – if it will need to be purchased (enter this amount in the column headed ‘To be Purchased’). such as rent. List all the ‘Fixed Assets’ required in order to commence business operations. and so on. The following steps are a guide for the completion of this table. and so on. this calculation is done for you. this calculation is done for you. 4. 8. list its ‘% Rate’ of depreciation and calculate its ‘Value of Depreciation’. 1. Depreciation schedules are available from the ATO. 3. 7. For each ‘Expense Item’. Add all amounts in the ‘Owned’ column and enter the total under ‘Total A’. If you are working on the computer version of the table. such as furniture and fittings. For each item of ‘Fixed Assets’. 2. and enter this amount in the column headed ‘Total Value’. 5. Then total these amounts for each item. 9. equipment. If you are working on the computer version of the table. If you are working on the computer version of the table. estimate its ‘Value’ – if it is already owned (enter this amount in the column headed ‘Owned’). and enter this amount. List all the ‘Expense Items’ required in order to commence business operations. stock. do not include the GST component. 6. in either the column headed ‘Owned’ – if the business already has this money put aside. For each item of ‘Fixed Assets’. or ‘Cost’ – if it will need to be purchased (enter this amount in the column headed ‘To be Purchased’).working on the computer version of the table. Then total these amounts for each item. and enter this amount in the column headed ‘Total Value’. NOTE: When completing this table. ESTABLISHMENT COSTS (Financial Table 4) (If a new business) The establishment costs for a small business enterprise can be summarised in Financial Table 4: Establishment Costs of your financial tables. this calculation is done for you. this calculation is done for you.

and going out of the business in the form of cash payments to suppliers. the business on a month by month basis. Add all amounts in the ‘Total A’ and ‘Total B’ columns and enter the amount under ‘Total C’.10. the cash flow statement should show only cash which has come into. refers to an estimated matching of incoming cash against outgoing cash in an appropriate time frame. 11. Add all amounts in the ‘To be Purchased’ column and enter the total under ‘Total B’. it is essential that you plan and schedule the amount of cash. CASH FLOW FORECAST (Financial Table 5) Cash flow refers to the money coming into a business from sales and other receipts. To avoid cash flow problems. If the cash flowing into your business does not cover the cash flowing out. which can provide motivation for the owner to achieve that target. This is achieved through cash flow forecasting. While the profits of a business can be viewed as a measure of its viability. only your monthly loan repayments.000 bank loan. If you are working on the computer version of the table. or projection. In the case of a new business. it is not concerned with your $50. the flow of cash into and out of a business can be said to be its life blood. or gone out of. this calculation is done for you. If you are working on the computer version of the table. This is an extremely precarious state of affairs. and the times at which it flows into and out of your business. Remember. employees. cash flow forecasting involves a process of ‘guesstimating’. Cash flows are only concerned with the actual cash flowing into and out of the business. Page 5 . 12. banks. Such a decision repeated on a regular basis could lead to insolvency. and so on. then over a period of time your business will have insufficient working capital to continue to operate. If you are working on the computer version of the table. as eventually your business will require additional capital to remain a viable proposition. This should show when you expect to receive and expend money on a monthly basis. Cash flow forecasting. That is. and assist the owner in planning the levels of stock to acquire. Cash flow forecasting also sets a target for supplies. based on supplies. The objective is to provide adequate funding to pay expenses when they are due. Add all amounts in the ‘Value of Depreciation’ column and enter the total under ‘Total Depreciation’. this calculation is done for you. PREPARING A CASH FLOW STATEMENT One of the requirements in the preparation of your Financial Plan is the completion of a Cash Flow Forecast for the first year of your business operation (Financial Table 5). this calculation is done for you.

you must be very careful to record transactions exactly when they are expected to take place. CI 1. • The ‘Other income – excluding GST’ only relates to activities associated with the specific business. • Cash Supplies payments and Credit supplies payments should not include a GST element. the figures are automatically transferred. and transactions that might be recorded here include interest earnings on the business bank account. then the total amount borrowed is entered in the row headed ‘Bank loans’ in the month in which it is received. RECEIPTS’. Such acquisitions are dependent on the availability of funds and the urgency of the requirement. this calculation is done for you. Transfer these figures from the Financial Table 3: Supplies Mix. If you are working on the computer version of the table. ensure that you enter the payments in the month when the actual payment for the goods was made. To ensure that the Cash Flow Forecast is meaningful.Plant and equipment’ must include any GST paid. CASH OUTFLOW (CO) CO 1. In ‘Loan repayments’ only record the capital element. CASH INFLOW (CI) NOTE: The Cash Flow records the anticipated money flowing into and out of the business and. you might have a metal folding machine on which you contract to do work for another company when the machine is free. • If you borrow money from the bank or any other source.The basic procedures for completing a cash flow forecast follow. ‘Acquisitions . to be of use. CO 4. Page 6 . The bottom line of the cash flow will indicate when the acquisitions can be afforded. Any interest paid is shown in ‘Bank interest and charges’. The ‘Acquisitions . That is. CO 2. CI 2. or using specialised machinery to process work for outside sources. CO 3.Stock and materials’ must include any GST paid. and needs to be planned. Total the cash inflow amounts for each month. Enter the income to be received from the various sources listed for each month.Excluding GST’. and enter this in ‘A. On the computer version of the table. Enter estimates of all the expenses that will be incurred by the business over the 12 month period. and enter the amounts for each month into the rows headed ‘Cash supplies – Excluding GST’ and ‘Credit supplies payments .

and so on. TAX PAYABLE’ is calculated by adding ‘Cash Supplies – excluding GST’. ‘E. If money is being borrowed. This is calculated by adding the amounts paid for all items listed under ‘CASH OUTFLOWS’ for which GST has been paid. The Table assumes that Tax is to be paid quarterly. then you will need an opening balance for the first month of operation. CO 10. this calculation is done for you. ‘Credit supplies payments – excluding GST’ and ‘Other Income – excluding GST’ and then multiplying by the ‘Tax Instalment Rate’. If you are working on the computer version of the table. The GST liability or. The Closing Balance for the first month.1575. CO 7. If you are working on the computer version of the table. it will automatically calculate 10% of these amounts. as there will be expenses to pay from the first moment of operation. this calculation is done for you. is the difference between the GST received and the Input Tax credits for that month. ‘F. CLOSING BALANCE’ is the Net Cash Flow (F) added to the Opening Balance (G). Tax is payable either quarterly or in special circumstances annually. becomes the Opening Balance for the second month. recorded in the Cash Inflow details each month. This is supplied as a percentage figure. Page 7 . ‘NET GST PAYABLE’ to the ATO. GST RECEIVED’ is the amount that has been invoiced to customers and will be 10% of the total of ‘Credit Supplies’ plus ‘Cash Supplies’ plus ‘Other Income’. The ‘Tax Instalment Rate’ is determined by the ATO. ‘G. NET CASH FLOW’ is the difference between the money ‘in’ (A+C) and the money ‘out’ (B+D+E). This will be an ‘owner contribution’ to the business. If you are working on the computer version of the table. CO 6. If you are working on the computer version of the tables. ‘H. and then dividing by 11. which will notify each business of their calculated figure.CO 5. ie. 15. CO 11. and should be recorded in the ‘Tax Instalment Rate’ row as a decimal figure.75% recorded as 0. OPENING BALANCE’ is the money that is in the account at the start of the month. CO 8. If you are working on the computer version of the table. ‘Input Tax Credits’ are the total GST that has been paid on acquisitions for that specific month. CO 12. ‘C. it will calculate what is payable each quarter. this calculation is done for you. CO 9.

• Cost of Supplies: this figure represents the cost of producing/providing the products/services.TOTAL EXPENSES • Coverage: refers to additional items. that is the costs additional to the cost of goods supplied. • Total Expenses: refers to the overheads of the business. A Profit and Loss Projection generally includes the following categories of information: • Total Business Income: this figure represents proceeds from the sale/provision of products/services. the expenses incurred in obtaining those receipts. after discounts. as well as in dollar value. and so on. rent. there will be a profit. because it indicates what the average mark-up is on the products/services supplied.TOTAL COVERAGE Use the following points as a guide to completing your Profit and Loss Projection (Financial Table 6). your business profits may be tied up in stock. salary and wages. In the case of a new business. loan repayments (principal). or be owed by debtors. or the day-to-day management of cash in order to pay the bills. and the Profit and Loss Projection.PROFIT AND LOSS PROJECTION (Financial Table 6) The Profit and Loss Projection is the financial record that summarises the activities of a business over a period of time. or cost of supplies. • Profit Reserves: PROFIT RESERVES = NET PROFIT . As a percentage. allowances and returned goods have been taken into account. It reports the receipts of the business. and the profit or loss resulting from these activities. owner’s drawings. The latter deals with the profitability of your business. Page 8 . in other words. It is important to differentiate between the Cash Flow Forecast. The sum of these items is termed Total Coverage. cost of business expansion.COST OF SUPPLIES Gross profit is often expressed as a percentage of supplies. • Net Profit: NET PROFIT = GROSS PROFIT . If your receipts are greater then your expenses. cost of improving assets. there will be a loss. such as tax liability. which dealt with the liquidity of your business. advertising. your Profit and Loss ‘Projection’ will present your plan for profitability. the cost of goods supplied. and so on. the gross profit figure is significant. If your expenses are greater than your receipts. Profit is not the same as cash: while cash is on hand and available at any point in time. other assets. which draw money from the net profit. • Gross Profit: GROSS PROFIT = SUPPLIES . Typical expenditure includes administration fees.

I 5. this calculation is done for you. Transfer the TOTAL of monthly figures for each item of expenditure listed in Financial Table 5: Cash Flow Forecast. If you are working on the computer version of the table. to the respective expenditure items in the Profit and Loss Projection. If you are working on the computer version of the table. add all the amounts entered for expenditure items. Gross Profit for that period. Total Expenses’ from ‘C. Transfer the total monthly figures for ‘Acquisitions – stock/materials’ recorded in Financial Table 5: Cash Flow Forecast. To calculate the ‘GROSS PROFIT’ for the period. Most of the expenditure items are self-explanatory. this calculation is done for you. If you are working on the computer version of the table. this transfer is done for you. To calculate ‘D. TOTAL BUSINESS INCOME’ by adding the ‘Total Supplies from Supplies Mix’ to ‘Other Income for Cash Flow. this calculation is done for you. Page 9 . E 2. You have already listed many expenditure items on a monthly basis in the Cash Flow Forecast (Financial Table 5). Be sure to include all the expenses the business incurs. Transfer the sum of the total monthly other income figures recorded in Financial Table 5: Cash Flow Forecast. this transfer is done for you. NET PROFIT’ for the period. Transfer the sum of the total monthly supplies figures recorded in Financial Table 3: Supplies Mix. I 3. This net profit figure should be sufficient to cover the items listed in Step C1. and to enable you to take full advantage of the tax deductions for legitimate expense items. you need to subtract the ‘Cost of Sales’ (B) from the ‘Total Business Income’ (A) for that period. Calculate ‘A. If you are working on the computer version of the table. to ‘B. If you are working on the computer version of the table. this transfer is done for you.’ If you are working on the computer version of the table. To calculate ‘E. in order to gain an accurate picture of the business operation. I 2. TOTAL EXPENSES’ for the period. COST OF SALES’ in the Profit and Loss Projection. Expenditure (E) E 1.Income (I) I 1. If you are working on the computer version of the table. E 3. If you are working on the computer version of the table. to ‘Total Supplies from Supplies Mix’ in the Profit and Loss Projection. to ‘Other Income from Cash Flow’ in the Profit and Loss Projection. you need to subtract ‘D. this transfer is done for you. I 4. this calculation is done for you.

A 5. this calculation is done for you. this calculation is done for you. Calculate ‘TOTAL INTANGIBLE ASSETS’ by adding the items listed in Step A5. A 2. this calculation is done for you. add the amounts entered for the items in Step C1. To calculate ‘F. If you are working on the computer version of the table. Net Profit’ for that period. Use the following points as a guide to completing your Balance Sheet (Financial Table 7). TOTAL COVERAGE’. subtract ‘F. Enter amounts for each of the applicable items listed under ‘Coverage’. This gives an indication of the amount of profit left after all possible expenses and drawings have been subtracted from the business income. If you are working on the computer version of the table. List the values of ‘INTANGIBLE ASSETS’ as indicated. this calculation is done for you. ASSETS (A) A 1. PROFIT RESERVES’. List the values of ‘FIXED ASSETS’ as indicated. at a specified date. A 6. because the assets and liabilities of the business can change with each transaction. BALANCE SHEET (Financial Table 7) The balance sheet is a summary document.Coverage (C) C 1. If you are working on the computer version of the table. but instead of showing your personal assets and liabilities. If you are working on the computer version of the table. To calculate ‘G. List the values of ‘CURRENT ASSETS’ as indicated. Each balance sheet should be dated. it shows those of your business. C 3. Page 10 . and what it owns. which shows what the business owes. Calculate ‘TOTAL CURRENT ASSETS’ by adding the items listed in Step A1. If you are working on the computer version of the table. A 4. Total Coverage’ from ‘E. this calculation is done for you. A 3. Calculate ‘TOTAL FIXED ASSETS’ by adding the items listed in Step A3. and provides an itemised account of the following equation: ASSETS = LIABILITIES + OWNER’S EQUITY It is important to remember that the balance sheet is only accurate on the day it is prepared. The balance sheet is a snapshot of your business operation at a particular point in time. It is a similar document to the Statement of Personal Net Worth. C 2.

L 3. List the breakdown of ‘OWNER’S EQUITY’. and the diagram on the following page as a guide. Calculate ‘TOTAL ASSETS’ by adding ‘TOTAL CURRENT ASSETS’ plus ‘TOTAL FIXED ASSETS’ plus ‘TOTAL INTANGIBLE ASSETS’. LIABILITIES (L) L 1. If you are working on the computer version of the table. If you are working on the computer version of the table. EQUITY (E) E 1. Calculate ‘TOTAL LIABILITIES’ by adding ‘TOTAL CURRENT LIABILITIES’ plus ‘TOTAL NON-CURRENT LIABILITIES’. 1. Calculate ‘TOTAL NON-CURRENT LIABILITIES’ by adding the items listed in Step L3. you should complete Financial Table 8: Source of Funds. this calculation is done for you. L 2. List the values of ‘CURRENT LIABILITIES’ as indicated. 4. To calculate ‘Total required’. Enter the amount that you estimate you will need to borrow in ‘Estimated loan’. L 5. 2. This should be based on the figure calculated for ‘Total B’ in Financial Table 4: Establishment Costs. and ‘Other loan costs’. this calculation is done for you. E 2. this calculation is done for you. Page 11 .A 7. this calculation is done for you. Calculate ‘NET ASSETS’ by subtracting ‘TOTAL LIABILITIES’ from ‘TOTAL ASSETS’. Use the following points. Calculate ‘TOTAL EQUITY’ by adding the items listed in Step E1. Enter each of the lender’s costs associated with the loan in ‘Stamp duty’. ‘Application fee’. NET ASSETS (N) N 1. Calculate ‘TOTAL CURRENT LIABILITIES’ by adding the items listed in Step L1. Transfer the amount from ‘Total required’ to ‘Total loan’. If you are working on the computer version of the table. If you are working on the computer version of the table. SOURCE OF FUNDS (Financial Table 8) (If applicable) When you have decided on where any additional capital that you require to start up or operate your business will come from. L 4. If you are working on the computer version of the table. this calculation is done for you. List the values of ‘NON-CURRENT LIABILITIES’ as indicated. 3. If you are working on the computer version of the table. add all of the amounts entered in Steps 1 and 2. this calculation is done for you.

As part of your Financial Plan you will need to indicate whether you intend to take out a loan.5. ‘Monthly payments’. Complete the lower section of Financial Table 8 if you intend taking a loan other than a business loan. ‘Annual interest payment’ and ‘Total amount to be repaid’. you should include Table 8: Source of Funds. Enter other loan details in ‘Loan term’. ‘Interest rate’. for example a personal loan or second mortgage. 6. ‘Annual principal payment’. Page 12 . and if so.