Capital, Management Fees, base Fund-level assumptions

This is used in the Legal Disclaimer sheet, which is purely optional, but something many people choose to include in their projections when they provide them to potential investors

You can use the model to forecast monthly, quarterly, or annually, and then the model will use that as it's base timescale.

This sets the # of periods in the model. (1 period = 1 month, or 1 quarter, or 1 year, as set in assumption above.) Max 36 periods in prebuilt model, can be extended if needed.

Define the end date that is the last date of the period used in the model

Defines the end of the fiscal year used in the model

The dates above set the start date and fiscal year end used in the timescales, but you can also set whether you want the primary timescale used for reports and charts to be absolute (for example, Jan 2021 or 2021) or relative (month 1 or year 1)

Optional assumptions for automatic revenue recognition and cash collection calculations, depreciation, corporate taxes, and VAT

sets the currency symbol used in the model, and the opening cash balance for the financial statements

by default this is turned on (select "yes"), you can turn off (select "no") to enter in your revenue recognition and billings schedules manually

Optional: Recognize pre-existing deferred revenues over 1 month

If select "yes" in the cell above, if applicable, and only if you feed billings into model and not revenues. do not use if you are calculating revenue recognition with the default revenue structure in the Standard Model or other themes (i.e. leave as "0"). If you have a business where you are taking upfront payments as revenues, they need to be recognized over the length of the period over which you are obligated to provide the services for which the payments cover. This assumption is used to calculated deferred revenues

by default this is turned on (select "yes"), you can turn off (select "no") to enter in your cash collection schedule manually

days. If select "yes" in the assumption above, the model allows you to assume the Days Accounts Receivable so that you can collect the cash later than recognizing the revenenues, if applicable for your business. Any period assumed <= 30 days means it's collected in same month as revenues.

by default model uses a simpler method for estimating balances of these accounts. Can be edited on Statements sheet, or can create different methods more similar to Accounts Receivable method if desired

months. The model assumes straight-line depreciation for all capital expenditures, all depreciated by the # of months in this input. If you need different depreciation schedules for different assets, it's not difficult to build that in, create that and link into the expense section.

used for calculating corporate taxes, only if any net loss carry-forwards are extinguished

By default, this has options for paying monthly, quarterly, or annually. Select your option in the dropdown.

assumption for VAT collected, as % of revenues. Assumption for VAT deductions is directly on Forecast sheet

By default, this has options for paying monthly, quarterly, or annually. Select your option in the dropdown.

this section forecasts inventory purchases based on a schedule of sales. Inventory purchases flow through cash, and are expensed through cost of sales to match the costs to revenues. Default assumption is that all purchases are paid in the month forecasted in the model, to create deferrals or inventory payable, create a custom schedule and feed into hooks.

if applicable, enter in positive numbers only. this takes the forecasted COGS and applies a lead time from when purchases are made to when they are added to inventory. This takes the forecasted purchases and creates a lag to when they are added to inventory.Work in progress and finished goods are considered a subset of the inventory and are not split out specifically.

if applicable, a % of current month's COGS can be kept in inventory, as "safety stock". This can be used in addition to the lead time assumptions if desired.

if applicable, the dollar value of the minimum order quantity. For example, if the inventory calcs say you need to purchase $500 of inventory, and your minimum order from your supplier is $1500, the model will buy $1500 of inventory and then run it down until next time it needs inventory.

Optional: % of Inventory Purchase paid at time of purchase

optional. This lets you determine when the inventory purchases are paid, and set how much is paid at time of purchase.

Optional: Remaining Inventory Purchases, paid 0 days post-purchase

days. The model allows you to assume the Inventory Accounts Payable so that you can pay for inventory after purchase. The model calculates the payables based on the other two options above first, then assumes the remaining flows through this timing.

Optional section. This section allows you to set + and - % impacts on a recurring monthly basis that is separate from the growth rates above. The two layer on each other, creating cyclical, seasonal effect on forecasted metrics.

change in baseline, per calendar month

The inputs here start with the first month in the model, and are reused for this month in every year throughout the forecast period in the model

Input a positive number for an extra increase during that month and a negative number for an extra decline.

You want the estimated overall impact to be close to zero, the sum of the increase and decreases per month entered above. It's not exact, because the bases of each month can be different - i.e. if the baseline is growing or changing - but it's a good estimate of the overall impact of your seasonality inputs

Helper calculations to monitor potential issues for you to research

Check to make sure assets = liabilities + shareholder's equity

The inverse - cash on hand below zero signifies the company runs out of money at some point

This check helps to make sure that the revenues and billings are being properly recorded

This check helps make sure the inventory calcs are correct, and that enough inventory is purchased

Does Net Property, Plant and Equipment stay greater than zero?

This check helps make sure that depreciation schedule is correct, and not over-depreciating capital expenditures