Professional Documents
Culture Documents
FINANCIAL PLA
FOR SMALL AND MEDIUM BUSINESSES
aysian Entrepreneurship Development Centre (MEDEC), Universiti Teknologi MARA
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FinePlanner
FINANCIAL PLAN
FOR SMALL AND MEDIUM BUSINESSES
Complimentary Edition
CAPITAL EXPENDITURE PROJECTION
Anggaran Perbelanjaan Aset Tetap
Classic House Restaurant & Catering
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#N/A 8,000
Furniture and Fittings 8,140
Electric/ Electrical Equipment 8,000
Stainless Steel Equipments and Goods 9,500
1 tonne Lorry 17,200
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Signboard 4,000
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Machinery and Equipment 35,578
#N/A 90,418
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Straight line
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URE PROJECTION
an Aset Tetap
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© 2009 Ismail Ab.Wahab MEDEC UiTM
Complimentary Edition
PRE-OPERATING & WORKING CAPITAL
Pra-Operasi & Modal Kerja
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Rental shop 2,800
Salaries, Wages, EPF & SOCSO 10,534
Promotion, Advertising and Entertainment 3,400
Water and Electricity 1,400
Phone and Fax 200
Road Tax/ Vehicle Insurance 2,000
Lorry and Store maintenance 1,360
Stationary and Transportation 480
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#N/A 39,104
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#N/A 138,087
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Supplementary Supplies/ Stock and Miscellaneous Expenses 5,760
Insurance and Road Tax for Motor Vehicle 2,000
Grand Opening, Flyers and Business Card 5,230
#N/A 227,466
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#N/A 10%
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0%
0%
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Fi © 2009 Ismail Ab.Wahab MEDEC UiTM
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KING CAPITAL
Complimentary Edition
SALES & PURCHASES
Jualan & Bellian
Classic House Restaurant & Catering
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#N/A RM #N/A RM
#N/A 2019 237,000 #N/A 2019 39,104
#N/A 2019 239,100 #N/A 2019 39,104
#N/A 2019 247,000 #N/A 2019 39,104
April 2019 252,000 April 2019 39,104
#N/A 2019 254,700 #N/A 2019 39,104
#N/A 2019 255,100 #N/A 2019 39,104
#N/A 2019 257,300 #N/A 2019 39,104
#N/A 2019 259,600 #N/A 2019 39,104
September 2019 262,000 September 2019 39,104
#N/A 2019 265,500 #N/A 2019 39,104
November 2019 286,700 November 2019 39,104
#N/A 2019 273,000 #N/A 2019 39,104
#N/A 2019 3,089,000 #N/A 2019 469,246
#N/A 2020 3,243,450 #N/A 2020 469,246
#N/A 2021 3,567,795 #N/A 2021 469,246
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#N/A 100% #N/A 100%
#N/A 0% #N/A 0%
#N/A 0% #N/A 0%
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Complimentary Edition
PROJECT IMPLEMENTATION COST
Kos Pelaksanaan Projek
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Complimentary Edition SOURCESSumber
OF PROJECT FINANCING
Pembiayaan Projek
Classic House Restaurant & Catering
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#N/A 8,000 #N/A #N/A #N/A #N/A
Furniture and Fittings 8,140 #N/A #N/A #N/A #N/A
Electric/ Electrical Equipment 8,000 #N/A #N/A #N/A #N/A
Stainless Steel Equipments and Goods 9,500 #N/A #N/A #N/A #N/A
1 tonne Lorry 17,200 #N/A #N/A #N/A #N/A
Signboard 4,000 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
Machinery and Equipment 35,578 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
0 0 #N/A #N/A #N/A #N/A
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#N/A 12,183 #N/A #N/A
#N/A 66,522 #N/A #N/A
#N/A 531,572 #N/A #N/A
#N/A 11,050 #N/A #N/A
#N/A 12,990 #N/A #N/A
#N/A 71,175 #N/A #N/A
#N/A 795,910 #N/A #N/A #N/A #N/A
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FinePlanner
FinePlanner © 2009 Ismail Ab.Wahab MEDEC UiTM
Complimentary Edition
LOAN AMORTIZATION & HIR
Jadual Bayaran Balik Pin
Classic House Restaurant & Catering
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FinePlanner
RTIZATION & HIRE-PURCHASE SCHEDULES
Jadual Bayaran Balik Pinjaman & Sewa-Beli
Classic House Restaurant & Catering
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#N/A 5%
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Bayaran Ansuran
#N/A Tahun
Pokok Faedah BayaranTahunan
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ULES
Baki Pokok
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Complimentary Edition DEPRECIATION OF FIXE
Susutnilai Aset Tetap
Classic House Restaurant & Catering
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FinePlan
ON OF FIXED ASSETS
utnilai Aset Tetap
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Complimentary Edition
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#N/A #N/A
#N/A 237,000 239,100
#N/A 0 0
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#N/A 11,050
#N/A 4,061 4,061
#N/A 22,174 22,174
#N/A 177,191 177,191
#N/A 12,990
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FinePlan
PRO-FOR
2019 #N/A
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3,089,000 3,243,450 3,567,795
0 0 0
11,050
48,732 53,605 58,966 0 0
266,088 292,697 321,966
2,126,290 2,291,994 2,474,269
12,990 14,289 15,718
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#N/A 2,550
#N/A 266,088 292,697 321,966 0 0
#N/A 48,732 53,605 58,966 0 0
#N/A 2,126,290 2,291,994 2,474,269 #VALUE! #VALUE!
#N/A 12,990 14,289 15,718
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#N/A #N/A #N/A #N/A #VALUE! #VALUE!
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#N/A 0
#N/A 0 0 0
#N/A 0 0 0
2021
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#N/A 2021
#N/A
2020
2019
#N/A #N/A
#N/A 8,000 8,000 8,000 #N/A
#N/A #N/A #N/A #N/A #N/A
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Deposit 8,500 8,500 8,500
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#N/A #N/A #N/A 0 0
#N/A 2019
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#N/A #N/A #N/A 0 0
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2011
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FinePlanner
Complimentary Edition FINANCIAL PERFORMANCE
Prestasi Kewangan
Classic House Restaurant & Catering
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Inventory Turnover
Return on Equity
Debt to Assets
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RM
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795,910
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Total
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Getting Started
Before you start the planning process, select the language by clicking “English” or “Malay” buttons planning period.
v Choose first year of planning period and first month of planning period.
v Select the legal form of business (private limited company or sole-proprietorship and others)
Financial Forecasting
v Click Capital expenditure projections menu for entering the projected cost of each fixed assets required for
business. Please key in the cost of new fixed assets and/or the market value for existing fixed assets (if an
Determine the number of years of economic or productive life for each asset (except land & building). The econo
life of an asset refers to the period (normally expressed in number of years) whereby the asset can be economic
used i.e. without much maintenance or breakdowns.
v Next, select the depreciation method for all assets. The recommended method for calculating depreciation is eit
straight-line or declining balance. The simplest and most commonly used is straight line method. It is calculated
taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total produc
years the asset can be reasonably expected to benefit the company [called “useful life” in accounting jargon].
planning purposes, the salvage value can be zero. The declining method of depreciation accelerates deprecia
faster than the straight-line method because it bases each year's depreciation on the assets’ previous-year net b
value.
v First, determine the pre-operating and incorporation costs. The pre-operating cost can includes busin
registration and licences, legal fees , stamp duties etc.
v Next, estimate the sales and marketing costs, general and administrative costs, and operations and techni
costs. These costs are incurred every month and are generally known as working capital. Other costs which are
paid monthly but are incurred every year can be included under other expenditure (annually) category such
payment of road tax and insurance for motor vehicles, licences etc.
v Estimate the increment rate for working capital expenditure (if any). Next, choose the current and estimated rates
corporate taxation from the list. The system will only calculate the amount of tax for private limited company.
v Fill in the sales projections table. Sales (or revenues) refers to the sales forecast derived from the
marketing plan. It is the total of forecasted cash and credit sales for each year throughout the planned
period. Sales are to be forested monthly (first planning year) and annually (after first year).
v The amount of monthly purchases in the purchase Projections table should be equal to the amount
purchases that have been projected in the working capital section under operations and technical cos
category.
v If there some credit sales or purchases, choose the percentage of credit sales collections and credit
purchase payments in the columns provided.
v Next, estimate the ending inventory of raw materials and finished goods (for manufacturing
businesses only). For trading and distribution businesses, the ending inventory figures are to be entered
the ending inventory of finished goods column only. It is assumed that there is no ending inventory fo
businesses involved in service industry. If your businesses are involved in both trading and service
activities, please select trading/distribution category under nature of business in the main menu.
v Go back to the main menu.
v The sources of financing schedule shows various sources of finance available to fund the business.
These could be internal and external sources of finance. The internal sources of finance include equity
contributions in cash and/or existing assets. External sources may include term loan and hire purchase
For planning purposes, other sources such as grants and money borrowed from individuals should be
considered as own cash contributions. For each asset and working capital required, p lease choose the
type of financing from the list provided in the sources of financing column.
v The amount of working capital is dependent upon the period until the business can generate enough
sales to cover its short-term expenditure. Therefore, the amount of working capital needed could be in th
range of one to six months. Please select the number of months from the list provided in relevant colum
v The final component of the project cost is provision for contingency. This cost is added to the total cost of
other four components based on a certain percentage (usually between 5 to 10 percent). The reason for includ
contingency cost in the project implementation cost schedule is to take care of any variance of the actual from
budgeted expenditure. For example, if the cost of materials increases during the planned period, the firm can uti
this fund to cover the extra cost without having to search for new funding.
This section presents the supporting schedules relating to the information that have been provided in the forecasting secti
The schedules are project cost and sources of funds summary, fixed assets and depreciation schedules, and loan amortizati
schedule.
This section presents the pro-forma financial statements and analysis of the financial performance and position of the propo
project.
v Pro forma cash flow statement refers to the projected statement of cash inflows and outflows throughout the plan
period. Under normal circumstances, the pro forma cash flow statement is prepared between three to five consecutive ye
with monthly details for the first year. The pro forma cash flow statement shows the following information:
· Cash inflows – the projected amount of cash flowing into the company.
· Cash outflows – the projected amount of cash flowing out of the company.
· Cash deficit or surplus – the difference between cash inflows and cash outflows.
· Cash position – the beginning and ending cash balances for a particular period.
v The pro forma income statement shows the expected profit for the planned period. The statement shows the
following information:
· Gross profit
· Net profit
v Gross profit is the gross margin realised after deducting the cost of goods sold from sales. It represents the
amount of profit before deducting other operating expenditure such as administration expenditure, marketing
expenditure, operations expenditure (for a trading entity), interest charges, depreciation charges on fixed assets
(except for a manufacturing concern) and other miscellaneous expenditure incurred throughout the year in orde
to obtain the net profit before tax.
v While the pro forma income statement shows the financial performance of the company for the planned peri
the pro forma balance sheet shows the financial position of the company at a specific point in time in terms of
assets owned and how those assets are financed. The pro forma balance sheet is prepared for a period of three
years.
v Assets are the economic resources of a business that are expected to be of benefit in the future. Assets report
in the balance sheet are generally categorised into two categories: non-current and current assets.
v Non-current assets include fixed assets and other assets that are owned and usually held to produce product
services. These assets are not intended for sale in the short term. Examples: property, plant, machinery, equipme
vehicles, major renovations and long-term investments. For fixed assets, the values shown in the balance sheet a
the book value i.e. the original cost less the accumulated depreciation.
v Current assets are short-term assets that can be converted into cash within a year. Examples: cash, inventorie
(raw materials, work-in-process and/or finished goods), receivables and other short-term investments.
v Owners’ equity refers to capital contributions from the owners or shareholders in terms of cash or assets plus
the accumulated amount of net income. However, if the business suffers a loss, the amount of loss will be deduc
from the capital contributions.
v Liabilities are the amounts owed by the business to outsiders. They are categorised as non-current (long-term
and current liabilities.
v Non-current or long-term liabilities refer to the long-term obligations of the business that mature in a period
more than one year. They usually include long-term loans as well as hire purchase.
v Current liabilities refer to the short-term obligations of the business that mature within a period of less than a
year. The most common forms of current liabilities are accounts payable and accrued payments
Financial Analysis
v Financial analysis is a technique of examining financial statements to help the entrepreneur analyse the financ
position and performance of the business.
v Financial analysis involves two basic steps: generating the information from the financial statements and
interpreting the results.
v The most common form of financial analysis is “ratio analysis”.
v Financial ratios are normally used to compare figures from the financial statement with other figures, so that t
true meaning of financial pictures can be obtained.
v There are various financial ratios that the entrepreneur can look at. However, the most commonly considered
ratios in small business decision-making fall into four categories: liquidity, efficiency, profitability and solvency.
v Liquidity Ratio: The term liquidity refers to the availability of liquid assets to meet short-term obligations. Thus, liquidity ra
measure the ability of the business to pay its monthly bills.The most widely used liquidity ratios are current ratio and quick ra
Current ratio can be determined by dividing total current assets by total current liabilities. Generally, this ratio shows
business’ ability to generate cash to meet its short-term obligations. Quick ratio, also known as the acid test ratio, measures
extent to which current liabilities are covered by liquid assets. To determine quick ratio, the calculation of liquid assets does
take into account inventrories since it is sometimes difficult to convert them into cash quickly.
v The efficiency ratios measure how efficient the business uses its assets to generate sales. The most widely used efficiency r
for planning purposes is inventory turnover ratio. Inventory turnover (or stock turnover) measures the number of tim
inventories have been converted into sales and indicates how liquid the inventory is. All other things being equal, the higher
turnover figure, the more liquid the business is. This ratio divides the cost of sales (or cost of goods sold) by the average value
inventory. The average value of inventory is derived by adding the opening and closing balance of and dividing the total by tw
v Profitability ratios are important indicators of the business’ financial performance. Investors will particularly be intereste
these ratios since they measure the performance and growth potential of the business. Some of the commonly used profitab
ratios are gross profit margin, net profit margin, return on assets and return on equity. Gross profit margin give a good indica
of financial health of the business. Without an adequate gross margin, the business will be unable to pay its operating and ot
expenses. Gross profit margin is calculated by dividing the business gross income by sales. Net profit margin is an indicatio
how effective the business is at cost control. The higher the net profit margin, the more effective the business is at conver
sales into actual profit. Net profit margin is calculated by dividing the business net income by sales. Return of assets measu
the overall return that the business is able to make on its assets. This ratio is derived by dividing the business net profit by to
assets. Return of equity shows what the business has earned on its owners’ investment in the business. This ratio is derived
dividing the business net profit by total equity.
This final category of ratios i.e. Solvency Ratios, is designed to help the entrepreneur measure the degree of financial risk that
business faces. By referring to this ratio, the entrepreneur can assess his level of debt and decide whether it is appropriate for
the business. The most commonly used solvency ratios are total debt (liabilities) to equity (also known as leverage or gearing),
total debt to total assets, and times interest earned (also known as interest coverage). The total debt to equity ratio measure
the percentage of the business’ assets financed by creditors relative to the percentage financed by the owners. This ratio is
calculated by dividing the the total debt by total equity. The debt to asset ratio measures the percentage of the business’ ass
financed by creditors relative to the percentage financed by the entrepreneur. This ratio is calculated by dividing the total deb
by total assets. Times interest earned ratio measures the number of times interest expense can be covered by profit before
interest and tax. This ratio is calculated by dividing total inte
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