Financial statements needed for business plan

Although there are no right or wrong business plans, they can fall into two different categories—traditional or lean startup.

Business financial plan example

Business plans, even among competitors in the same industry, are rarely identical. These forward-looking projected financial statements are often called pro-forma financial statements or simply the " pro-formas. Do not confuse the cash flow projection with the cash flow statement. Only enter the sales that are collectible in cash during each month you are detailing. She recommends you do some homework and find out some of the prevailing ratios used in your industry for liquidity analysis, profitability analysis, and debt and compare those standard ratios with your own. But they all have the same elements. Here is a template for a balance sheet that you can use for your business plan or later when your business is up and running : Download the Sample Balance Sheet Template Once again, this template is an example of the different categories of assets and liabilities that may apply to your business. In fact, very few companies are able to last without one. They are going to want to see numbers that say your business will grow--and quickly--and that there is an exit strategy for them on the horizon, during which they can make a profit. Marketing strategy: This area describes how the company will attract and keep its customer base and how it intends to reach the consumer.

The plan document also contains financial spreadsheets with projected revenues, expenses and profit. There are definitely more benefits to creating and sticking to a business plan including being able to think through ideas without putting too much money into them—and, ultimately, losing in the end.

It summarizes all the financial data about your business in three categories; assets, liabilities, and equity. A business plan is a written document that describes in detail how a business—usually a new one—is going to achieve its goals.

Lenders want to know that you can follow a budget and that you will not over-spend.

financial business plan template

They are going to want to see numbers that say your business will grow--and quickly--and that there is an exit strategy for them on the horizon, during which they can make a profit.

As the word "reconciliation" suggests, this section shows an opening balance, which is the carryover from the previous month's operations.

Even if you don't need financing, you should compile a financial forecast in order to simply be successful in steering your business.

Some business planning software programs will have these formulas built in to help you make these projections. Pinson also recommends that you undertake a financial statement analysis to develop a study of relationships and compare items in your financial statements, compare financial statements over time, and even compare your statements to those of other businesses.

business financial plan template excel

Set up different sections for different lines of sales and columns for every month for the first year and either on a monthly or quarterly basis for the second and third years.

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Business Plan Essentials: The Financial Plan