7.

0 Financial Plan

Start- up Costs
Here is the table for the needed start up requirements on coffee shop, it’s start
up cost are listed below;

START-UP REQUIREMENTS
Current Assets;
Cash Required Php 50,000
Start-Up Expenses
Furniture and Fixture Php 12,000
Interior Design Php 30,000
Marketing and Promotion Php 10,000
Licensing and Permits Php 8,000
Utilities (Electricity, Water, etc.) Php 5,000
Rent Expense Php 5,000
Machineries & Equipments Php 120,000
Total Estimated Start-Up Cost Php 300,000

Monthly Operating Expenses for Coffee Shop:

Operating Expenses (Monthly):

Operating Expenses (Monthly):

Category Estimated Monthly Cost (₱)

Rent 5,000
Utilities 500
Salaries and Wages 8,000
Inventory 4,000
Marketing and Advertising 1,000
Maintenance 1,000
Administrative Expenses 500

Total Monthly Expenses ₱20,000

Revenue and Profit:

Category Estimated Monthly Revenue (₱)

Coffee Sales 25,000

Tea Sales 5,000
Pastries and Snacks Sales 15,000
Total Monthly Revenue ₱45,000

Category Estimated Monthly Profit (₱)

Gross Profit 25,000

Operating Expenses (20,000)
Net Profit ₱ 5,000

Cash Flow:
Category Estimated Cash Flow (₱)
Cash Inflows (Sales) 45,000
Cash Outflows (Expenses) (20,000)

Net Cash Flow ₱ 25,000

Tax Planning

In our tax planning strategy for our small coffee shop, we prioritize
optimizing year-end expenses by strategically timing major purchases to benefit
from immediate deductions and lower our taxable income. Efficient inventory
management is crucial, aiming to minimize year-end stock levels to further
reduce our taxable income. We explore tax-advantaged employee benefits to not
only attract and retain talent but also take advantage of deductions. Rigorous
expense tracking ensures accurate deductions, avoiding missed opportunities.
Regular consultations with a tax professional are integral to our approach,
providing expert advice for personalized tax optimization. This concise table
outlines our key strategies, emphasizing simplicity and effectiveness in
 navigating the tax landscape for our coffee shop business. The table below
shows the tax plan we want to implement.

Strategy Implementation Benefit

End-of-Year Expenses Time major purchases late in Immediate deductions, lower
the year taxable income.

Inventory Management Optimize stock levels Lower year-end inventory,

reducing taxable
income.

Empolyee Benefits Explore tax- advantage Deductions for benefits,

benefits attracting and retaining talent.

Expense Tracking Maintain meticulous records Accurate deductions,

avoiding missed
opportunities.

Consult Tax Professional Regular consultations Expert advice for

personalized tax optimization.