[Company Name

]
Annual Operating Budget—Services
Model Inputs and General Information
Model key
Bold numbers in white cells are entered by user.
Italicized numbers in gray cells are calculations that generally should not be altered.
Black numbers in gray cells are calculations that can be overwritten.

General notes and assumptions
Document key financial planning assumptions here.

Key model inputs
Use this area to capture key general assumptions that carry throughout the model.
1. Fringe rate for labor
2. Number of years for straight-line
depreciation
3. Tax rate
4. Annual targeted revenue
per employee

25%
5

30%
$270,000

[Company Name]
Annual Operating Budget—Services
[Date]

Business Unit Budgets—Service Operations, Sales and Marketing, and General and Administrative
A. Service operations
Service operations expenses
Salaries
Benefits (such as health care, training, 401(k))
Net travel and entertainment
Supplies
General and miscellaneous
Total service operations expenses
Service operations headcount analysis by role
Vice president
Director
Manager
Analyst
TBD
TBD
Total service operations headcount
Service operations labor expense breakdown by role
Annual cost
Vice president
$150,000
Director
120,000
Manager
90,000
Analyst
75,000
TBD
0
TBD
0
Service total operations labor expense

Q1
$491,250
122,810
50,000
25,000
25,000
$714,060

Q2
$543,750
135,940
50,000
25,000
25,000
$779,690

Q3
$562,500
140,630
50,000
25,000
25,000
$803,130

Q4
$592,500
148,130
50,000
25,000
25,000
$840,630

Annual total
$2,190,000
547,510
200,000
100,000
100,000
$3,137,510

Number of full-time employees (FTEs)
1.00
1.00
1.00
1.00
2.00
3.00
3.00
4.00
5.00
6.00
6.00
6.00
15.00
15.00
16.00
16.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
23.00
25.00
26.00
27.00

4.00
12.00
23.00
62.00
0.00
0.00
101.00

Notes
Total labor expense pulled from Row 35
Rounded calculation based on input sheet rate
Annual total should equal financial plan target
Annual total should equal financial plan target

Notes

Q1

Q2

Q3

Q4

Notes

$37,500
60,000
112,500
281,250
0
0
$491,250

$37,500
90,000
135,000
281,250
0
0
$543,750

$37,500
90,000
135,000
300,000
0
0
$562,500

$37,500
120,000
135,000
300,000
0
0
$592,500

$150,000
360,000
517,500
1,162,500
0
0
$2,190,000

Q1
$441,250
110,310
75,000
15,000
150,000
25,000
25,000
$841,560

Q2
$441,250
110,310
50,000
15,000
150,000
25,000
25,000
$816,560

Q3
$520,000
130,000
65,000
15,000
150,000
25,000
25,000
$930,000

Q4
$550,000
137,500
70,000
15,000
160,000
25,000
25,000
$982,500

Annual total
$1,952,500
488,120
260,000
60,000
610,000
100,000
100,000
$3,570,620

Number of full-time employees (FTEs)
2.00
2.00
2.00
2.00
2.00
2.00
2.00
3.00
3.00
3.00
4.00
4.00
1.00
1.00
1.00
1.00
4.00
4.00
5.00
5.00
4.00
4.00
5.00
5.00
0.00
0.00
0.00
0.00
16.00
16.00
19.00
20.00

8.00
9.00
14.00
4.00
18.00
18.00
0.00
71.00

B. Sales and marketing
Sales and marketing expenses
Salaries
Benefits (such as health care, training, 401(k))
Marketing programs
Public relations
Travel and entertainment
Supplies
General and miscellaneous
Total sales and marketing expenses
Sales and marketing headcount analysis by role
Vice president
Director
Marketing managers
Marketing analysts
Business development managers
Customer service
TBD
Total sales and marketing headcount
Sales and marketing labor expense breakdown by role
Annual cost
Vice president
$150,000
Director
120,000
Marketing managers
110,000
Marketing analysts
75,000
Business development managers
130,000
Customer service
75,000
TBD
0
Total sales and marketing labor expense

Notes
Rounded calculation based on input sheet rate

Notes

Q1

Q2

Q3

Q4

Notes

$75,000
60,000
82,500
18,750
130,000
75,000
0
$441,250

$75,000
60,000
82,500
18,750
130,000
75,000
0
$441,250

$75,000
60,000
110,000
18,750
162,500
93,750
0
$520,000

$75,000
90,000
110,000
18,750
162,500
93,750
0
$550,000

$300,000
270,000
385,000
75,000
585,000
337,500
0
$1,952,500

Q1
$581,250
145,310
32,600
0
12,000
10,000
5,000
2,000
25,000
20,000
10,000
10,000
15,000
25,000
2,000
$895,160

Q2
$581,250
145,310
33,050
0
12,000
20,000
5,000
2,000
25,000
20,000
10,000
10,000
15,000
25,000
3,000
$906,610

Q3
$581,250
145,310
33,650
0
12,000
10,000
5,000
2,000
25,000
20,000
10,000
10,000
15,000
25,000
4,000
$898,210

Q4
$598,750
149,690
34,250
0
12,000
10,000
5,000
2,000
25,000
20,000
10,000
10,000
15,000
25,000
5,000
$921,690

Annual total
$2,342,500
585,620
133,550
0
48,000
50,000
20,000
8,000
100,000
80,000
40,000
40,000
60,000
100,000
14,000
$3,621,670

Number of full-time employees (FTEs)
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00

4.00
4.00
4.00

C. General and administrative
General and administrative expenses
Salaries
Benefits (such as health care, training, 401(k))
Depreciation
Rent
Insurance
Professional services (not including subcontractors)
Dues and subscriptions
Bank charges
Telephone
Recruiting
Postage
Interest expense
Nonbillable travel and entertainment
Other supplies
Miscellaneous
Total general and administrative expenses
General and administrative headcount analysis by role
Chief executive officer
Chief financial officer
Chief information officer

Notes
Rounded calculation based on input sheet rate

Notes
Rev: 2/12/2008

Vice president of human resources
Administrative staff
Human resources director
Human resources staff
Information technology director
Information technology manager
Information technology analyst
Finance director or controller
Finance and accounting
TBD
Total general and administrative headcount
General and administrative labor expense breakdown by role
Annual cost
Chief executive officer
$300,000
Chief financial officer
225,000
Chief information officer
200,000
Vice president of human resources
160,000
Administrative staff
50,000
Human resources director
90,000
Human resources staff
60,000
Information technology director
100,000
Information technology manager
90,000
Information technology analyst
70,000
Finance director or controller
120,000
Finance and accounting
70,000
TBD
0
Total general and administrative labor expense
Depreciable assets
Buildings
Equipment
IT infrastructure
Other
Other
Total depreciable assets
Depreciation base

1.00
6.00
1.00
3.00
1.00
2.00
3.00
2.00
2.00
0.00
24.00

1.00
6.00
1.00
3.00
1.00
2.00
3.00
2.00
2.00
0.00
24.00

1.00
6.00
1.00
3.00
1.00
2.00
3.00
2.00
2.00
0.00
24.00

1.00
6.00
1.00
3.00
1.00
2.00
4.00
2.00
2.00
0.00
25.00

Q1

Q2

Q3

Q4

$75,000
56,250
50,000
40,000
75,000
22,500
45,000
25,000
45,000
52,500
60,000
35,000
0
$581,250

$75,000
56,250
50,000
40,000
75,000
22,500
45,000
25,000
45,000
52,500
60,000
35,000
0
$581,250

$75,000
56,250
50,000
40,000
75,000
22,500
45,000
25,000
45,000
52,500
60,000
35,000
0
$581,250

$75,000
56,250
50,000
40,000
75,000
22,500
45,000
25,000
45,000
70,000
60,000
35,000
0
$598,750

Q1

Q2

Beginning balance
$600,000
20,000
25,000
0
0
$645,000

$0
2,000
5,000
0
0
$7,000

$0
0
4,000
5,000
0
$9,000

$645,000

$652,000

$661,000

Q3
Q4
Additional purchases
$0
$0
4,000
4,000
3,000
8,000
0
0
5,000
0
$12,000
$12,000
$673,000

$685,000

4.00
24.00
4.00
12.00
4.00
8.00
13.00
8.00
8.00
0.00
97.00
Notes
$300,000
225,000
200,000
160,000
300,000
90,000
180,000
100,000
180,000
227,500
240,000
140,000
0
$2,342,500
Annual total

Notes

$600,000
30,000
45,000
5,000
5,000
$685,000
$685,000

Rev: 2/12/2008

[Company Name]
Annual Operating Budget—Services
[Date]

Pro Forma Financial Statements—Income Statement, Balance Sheet, and Cash Flow Summary
Pro forma annual income statement
Headcount summary
Service operations
Sales and marketing
General and administrative
Total headcount
Revenues
Cost of sales
Gross margin
Margin contribution %

Q1
23.00
16.00
24.00
63.00

Q2
25.00
16.00
24.00
65.00

Q3
26.00
19.00
24.00
69.00

Q4
27.00
20.00
25.00
72.00

27.00
20.00
25.00
72.00

$4,500,000
1,000,000
$3,500,000
78%

$5,000,000
1,100,000
$3,900,000
78%

$5,200,000
1,200,000
$4,000,000
77%

$5,500,000
1,300,000
$4,200,000
76%

$20,200,000
4,600,000
$15,600,000
77%

Checkpoint: Revenue per employee from this budget
Financial
Targeted
Plan Revenue
revenue per employee
Employee

$280,556
$270,000

Expenses
Service operations
Sales and marketing
General and administrative
Total expenses

Q1
$714,060
841,560
895,160
$2,450,780

Q2
$779,690
816,560
906,610
$2,502,860

Q3
$803,130
930,000
898,210
$2,631,340

Q4
$840,630
982,500
921,690
$2,744,820

$3,137,510
3,570,620
3,621,670
$10,329,800

Operating profit

$1,049,220

$1,397,140

$1,368,660

$1,455,180

$5,270,200

0
5,000

21,000
5,000

20,000
5,000

35,000
5,000

76,000
20,000

1,054,220

1,423,140

1,393,660

1,495,180

5,366,200

316,270

426,940

418,100

448,550

1,609,860

737,950

996,200

975,560

1,046,630

3,756,340

Other gains (losses)
Other income
Total income
Taxes

30.0%

Net income

Pro forma annual balance sheet
Assets
Cash
Accounts receivable
Other current assets
Total current assets
Depreciable assets
Accumulated depreciation
Land
Net property, plant, and equipment
Other assets
Total assets

Q1

Q2

Q3

Q4

Annual total

Beginning balance
50,000
40,000
20,000
110,000

808,550
40,000
20,000
868,550

1,823,800
40,000
20,000
1,883,800

2,816,010
40,000
20,000
2,876,010

3,879,890
40,000
20,000
3,939,890

3,879,890
40,000
20,000
3,939,890

645,000
0
640,000
1,285,000

652,000
32,600
640,000
1,259,400

661,000
65,650
640,000
1,235,350

673,000
99,300
640,000
1,213,700

685,000
133,550
640,000
1,191,450

685,000
133,550
640,000
1,191,450

100,000

100,000

100,000

100,000

100,000

100,000

$1,495,000

$2,227,950

$3,219,150

$4,189,710

$5,231,340

$5,231,340

$20,000
10,000
10,000
$40,000

$20,000
10,000
10,000
$40,000

$20,000
10,000
10,000
$40,000

$20,000
10,000
10,000
$40,000

$20,000
10,000
10,000
$40,000

$20,000
10,000
10,000
$40,000

Long-term debt
Notes payable
Other long-term liabilities
Total long-term liabilities

$150,000
0
5,000
$155,000

$145,000
0
5,000
$150,000

$140,000
0
5,000
$145,000

$135,000
0
5,000
$140,000

$130,000
0
5,000
$135,000

$130,000
0
5,000
$135,000

Total liabilities

$195,000

$190,000

$185,000

$180,000

$175,000

$175,000

Common stock
Retained earnings
Cumulative net income
Net equity

$1,000,000
300,000
0
$1,300,000

$1,000,000
300,000
737,950
$2,037,950

$1,000,000
300,000
1,734,150
$3,034,150

$1,000,000
300,000
2,709,710
$4,009,710

$1,000,000
300,000
3,756,340
$5,056,340

$1,000,000
300,000
3,756,340
$5,056,340

Total liabilities and equity

$1,495,000

$2,227,950

$3,219,150

$4,189,710

$5,231,340

$5,231,340

Liabilities and equity
Accounts payable
Accrued liabilities
Other current liabilities
Total current liabilities

Pro forma annual cash flow summary
Sources of funds
From operations
Add depreciation

Q1
$732,950
32,600

Q2
$970,200
33,050

Q3
$950,560
33,650

Q4
$1,006,630
34,250

0
0

0
0

0
0

0
0

Other sources of funds
Other gains (losses)
Other
Total sources

0
5,000
$770,550

21,000
5,000
$1,029,250

20,000
5,000
$1,009,210

35,000
5,000
$1,080,880

Uses of funds
Repurchase of stock
Debt retirement
Purchase of equipment and assets
Other uses
Total uses

0
-5,000
-7,000
0
-$12,000

0
-5,000
-9,000
0
-$14,000

0
-5,000
-12,000
0
-$17,000

0
-5,000
-12,000
0
-$17,000

Net change in cash

758,550

1,015,250

992,210

1,063,880

Cumulative cash

758,550

1,773,800

2,766,010

3,829,890

Beginning balance
Ending balance

$50,000
$808,550

$808,550
$1,823,800

$1,823,800
$2,816,010

$2,816,010
$3,879,890

Summary trend data for chart
Quarterly revenue
Quarterly margin
Quarterly net income (loss)
Quarterly cash flow
Quarterly total assets

Q1
4,500,000
3,500,000
737,950
758,550
2,227,950

Q2
5,000,000
3,900,000
996,200
1,015,250
3,219,150

Q3
5,200,000
4,000,000
975,560
992,210
4,189,710

Q4
5,500,000
4,200,000
1,046,630
1,063,880
5,231,340

Net changes in balance sheet accounts
Current assets
Current liabilities

Notes

Taken from 3-year financial plan
Taken from 3-year financial plan

Compare to financial plan
From Input sheet

Notes
Taken from operations section
Taken from sales and marketing section
Taken from general and administrative section

Rounded calculation based on input sheet rate

Notes

Notes

Quarterly Trend for Key Financial Metrics
6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0

Q1

Quarterly revenue

Q2

Quarterly margin

Q3

Quarterly net income (loss)

Q4

Quarterly cash flow

Quarterly total assets