You are on page 1of 1

Notes on Preparation

You may want to print this information to use as reference later. To delete these instruct
box and then press the DELETE key.

You should change "category 1, category 2", etc. labels to the actual names of your sales cate
for each month. The spreadsheet will add up total annual sales. In the "%" columns, the spread
Profit and Loss Projection (12 Months) contributed by each category.
Enter your Company Name here
COST OF GOODS SOLD (also called Cost of Sales or COGS): COGS are those expenses dir
your products or services. For example, purchases of inventory or raw materials, as well as the
Fiscal Year Begins employees directly involved in producing your products/services, are included in COGS. These
Jan-08 along with the volume of production or sales. Study your records to determine COGS for each
the key to profitability for most businesses, so approach this part of your forecast with great ca
product/service, analyze the elements of COGS: how much for labor, for materials, for packing

LY
etc.? Compare the Cost of Goods Sold and Gross Profit of your various sales categories. Whic

.%

8
8
8

8
8

8
8
B/A

y-0

g-0

v-0

AR
p-0

c-0
r-0
b-0

n-0
n-0

r- 0

t-0
least - and why? Underestimating COGS can lead to under pricing, which can destroy your abi

l-0
IND

%
%

%
Ma

Ma

Oc

No
Ap

Au

YE
De
Se
Fe

Ju
Ju
Ja
and be realistic. Enter the COGS for each category of sales for each month. In the "%" column

%
Revenue (Sales) COGS as a % of sales dollars for that category.
Category 1 - - - - - - - - - - - - 0 -
Category 2 - - - - - - - - - GROSS- PROFIT: Gross
- - Total0Sales
Profit is - minus Total COGS. In the "%" columns, the sprea
Category 3 - - - - - - - - - of Total-Sales. - - 0 -
Category 4 - - - - - - - - - - - - 0 -
Category 5 - - - - - - - - - OPERATING - EXPENSES
- (also- called0 Overhead):
- These are necessary expenses which, howe
Category 6 - - - - - - - - - or buying - your products/services.
- - Rent, 0 utilities,
- telephone, interest, and the salaries (and payr
Category 7 - - - - - - - - - employees - are examples.
- Change- the0 names
- of the Expense categories to suit your type of bu
Total Revenue (Sales) 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 You0 may
0.0 need0to0.0combine0some 0.0 categories,
0 0.0 however, to stay within the 20 line limit of the spre
remain reasonably fixed regardless of changes in sales volume. Some, like sales commissions
Cost of Sales utilities, may vary with the time of year. Your projections should reflect these fluctuations. The o
Category 1 - - - - - - - - - simulate - your financial
- - nearly
reality as 0 as -possible. In the "%" columns, the spreadsheet will s
Category 2 - - - - - - - - - -
Total Sales. - - 0 -
Category 3 - - - - - - - - - - - - 0 -
Category 4 - - - - - - - - - NET PROFIT:
- The spreadsheet
- - will subtract
0 - Total Operating Expenses from Gross Profit to cal
Category 5 - - - - - - - - - it will show
- Net Profit
- as a % of- Total Sales.
0 -
Category 6 - - - - - - - - - - - - 0 -
Category 7 - - - - - - - - - INDUSTRY
- AVERAGES:
- The first
- column,
0 -labeled "IND. %" is for posting average cost factors
Total Cost of Sales 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - Industry
0 - average
0 data
- is commonly
0 - available
0 - from industry associations, major manufacturers
and local colleges, Chambers of Commerce, and public libraries. One common source is the b
Gross Profit 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - by Robert
annually 0 -Morris0Associates.
- 0It can
- be found in major libraries, and your banker almos
your expenses will be exactly in line with industry averages, but they can be helpful in areas in
Expenses
Salary expenses - - - - - - - - - - - - 0 -
Payroll expenses - - - - - - - - - - - - 0 -
Outside services - - - - - - - - - - - - 0 -
Supplies (office and
operating) - - - - - - - - - - - - 0 -
Repairs and
maintenance - - - - - - - - - - - - 0 -
Advertising - - - - - - - - - - - - 0 -
Car, delivery and travel - - - - - - - - - - - - 0 -
Accounting and legal - - - - - - - - - - - - 0 -
Rent & Related Costs - - - - - - - - - - - - 0 -
Telephone - - - - - - - - - - - - 0 -
Utilities - - - - - - - - - - - - 0 -
Insurance - - - - - - - - - - - - 0 -
Taxes (real estate, etc.) - - - - - - - - - - - - 0 -
Interest - - - - - - - - - - - - 0 -
Depreciation - - - - - - - - - - - - 0 -

Other expenses (specify) - - - - - - - - - - - - 0 -

Other expenses (specify) - - - - - - - - - - - - 0 -

Other expenses (specify) - - - - - - - - - - - - 0 -

Misc. (unspecified) - - - - - - - - - - - - 0 -
Total Expenses 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 -

Net Profit Before Taxes


Income Taxes - - - - - - - - - - - - -
Net Operating Income 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 -