[Company Name] Annual Operating Budget—Services Model Inputs and General Information
Model key
Bold numbers in white cells are entered by user. Italicized numbers in gray cells are calculations that generally should not be altered. Black numbers in gray cells are calculations that can be overwritten.
General notes and assumptions
Document key financial planning assumptions here.
Key model inputs
Use this area to capture key general assumptions that carry throughout the model. 1. Fringe rate for labor 2. Number of years for straight-line depreciation 3. Tax rate 4. Annual targeted revenue per employee 25% 5
30% $270,000
[Company Name] Annual Operating Budget—Services
[Date]
Business Unit Budgets—Service Operations, Sales and Marketing, and General and Administrative
A. Service operations
Service operations expenses Salaries Benefits (such as health care, training, 401(k)) Net travel and entertainment Supplies General and miscellaneous Total service operations expenses Service operations headcount analysis by role Vice president Director Manager Analyst TBD TBD Total service operations headcount Service operations labor expense breakdown by role Annual cost Vice president $150,000 Director 120,000 Manager 90,000 Analyst 75,000 TBD 0 TBD 0 Service total operations labor expense Q1 $491,250 122,810 50,000 25,000 25,000 $714,060 Q2 $543,750 135,940 50,000 25,000 25,000 $779,690 Q3 $562,500 140,630 50,000 25,000 25,000 $803,130 Q4 $592,500 148,130 50,000 25,000 25,000 $840,630 Annual total $2,190,000 547,510 200,000 100,000 100,000 $3,137,510 Notes
Total labor expense pulled from Row 35 Rounded calculation based on input sheet rate Annual total should equal financial plan target Annual total should equal financial plan target
Number of full-time employees (FTEs) 1.00 1.00 1.00 1.00 2.00 3.00 3.00 4.00 5.00 6.00 6.00 6.00 15.00 15.00 16.00 16.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.00 25.00 26.00 27.00 Q1 $37,500 60,000 112,500 281,250 0 0 $491,250 Q2 $37,500 90,000 135,000 281,250 0 0 $543,750 Q3 $37,500 90,000 135,000 300,000 0 0 $562,500 Q4 $37,500 120,000 135,000 300,000 0 0 $592,500
Notes 4.00 12.00 23.00 62.00 0.00 0.00 101.00 Notes $150,000 360,000 517,500 1,162,500 0 0 $2,190,000
B. Sales and marketing
Sales and marketing expenses Salaries Benefits (such as health care, training, 401(k)) Marketing programs Public relations Travel and entertainment Supplies General and miscellaneous Total sales and marketing expenses Sales and marketing headcount analysis by role Vice president Director Marketing managers Marketing analysts Business development managers Customer service TBD Total sales and marketing headcount Sales and marketing labor expense breakdown by role Annual cost Vice president $150,000 Director 120,000 Marketing managers 110,000 Marketing analysts 75,000 Business development managers 130,000 Customer service 75,000 TBD 0 Total sales and marketing labor expense Q1 $441,250 110,310 75,000 15,000 150,000 25,000 25,000 $841,560 Q2 $441,250 110,310 50,000 15,000 150,000 25,000 25,000 $816,560 Q3 $520,000 130,000 65,000 15,000 150,000 25,000 25,000 $930,000 Q4 $550,000 137,500 70,000 15,000 160,000 25,000 25,000 $982,500 Annual total $1,952,500 488,120 260,000 60,000 610,000 100,000 100,000 $3,570,620 Notes
Rounded calculation based on input sheet rate
Number of full-time employees (FTEs) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 4.00 4.00 1.00 1.00 1.00 1.00 4.00 4.00 5.00 5.00 4.00 4.00 5.00 5.00 0.00 0.00 0.00 0.00 16.00 16.00 19.00 20.00 Q1 $75,000 60,000 82,500 18,750 130,000 75,000 0 $441,250 Q2 $75,000 60,000 82,500 18,750 130,000 75,000 0 $441,250 Q3 $75,000 60,000 110,000 18,750 162,500 93,750 0 $520,000 Q4 $75,000 90,000 110,000 18,750 162,500 93,750 0 $550,000
Notes 8.00 9.00 14.00 4.00 18.00 18.00 0.00 71.00 Notes $300,000 270,000 385,000 75,000 585,000 337,500 0 $1,952,500
C. General and administrative
General and administrative expenses Salaries Benefits (such as health care, training, 401(k)) Depreciation Rent Insurance Professional services (not including subcontractors) Dues and subscriptions Bank charges Telephone Recruiting Postage Interest expense Nonbillable travel and entertainment Other supplies Miscellaneous Total general and administrative expenses General and administrative headcount analysis by role Chief executive officer Q1 $581,250 145,310 32,600 0 12,000 10,000 5,000 2,000 25,000 20,000 10,000 10,000 15,000 25,000 2,000 $895,160 Q2 $581,250 145,310 33,050 0 12,000 20,000 5,000 2,000 25,000 20,000 10,000 10,000 15,000 25,000 3,000 $906,610 Q3 $581,250 145,310 33,650 0 12,000 10,000 5,000 2,000 25,000 20,000 10,000 10,000 15,000 25,000 4,000 $898,210 Q4 $598,750 149,690 34,250 0 12,000 10,000 5,000 2,000 25,000 20,000 10,000 10,000 15,000 25,000 5,000 $921,690 Annual total $2,342,500 585,620 133,550 0 48,000 50,000 20,000 8,000 100,000 80,000 40,000 40,000 60,000 100,000 14,000 $3,621,670 Notes
Rounded calculation based on input sheet rate
Number of full-time employees (FTEs) 1.00 1.00 1.00 1.00
Notes 4.00
Rev: 8/12/2008
Chief financial officer Chief information officer Vice president of human resources Administrative staff Human resources director Human resources staff Information technology director Information technology manager Information technology analyst Finance director or controller Finance and accounting TBD Total general and administrative headcount General and administrative labor expense breakdown by role Annual cost Chief executive officer $300,000 Chief financial officer 225,000 Chief information officer 200,000 Vice president of human resources 160,000 Administrative staff 50,000 Human resources director 90,000 Human resources staff 60,000 Information technology director 100,000 Information technology manager 90,000 Information technology analyst 70,000 Finance director or controller 120,000 Finance and accounting 70,000 TBD 0 Total general and administrative labor expense Depreciable assets Buildings Equipment IT infrastructure Other Other Total depreciable assets Depreciation base Beginning balance $600,000 20,000 25,000 0 0 $645,000 $645,000
1.00 1.00 1.00 6.00 1.00 3.00 1.00 2.00 3.00 2.00 2.00 0.00 24.00 Q1 $75,000 56,250 50,000 40,000 75,000 22,500 45,000 25,000 45,000 52,500 60,000 35,000 0 $581,250 Q1 $0 2,000 5,000 0 0 $7,000 $652,000
1.00 1.00 1.00 6.00 1.00 3.00 1.00 2.00 3.00 2.00 2.00 0.00 24.00 Q2 $75,000 56,250 50,000 40,000 75,000 22,500 45,000 25,000 45,000 52,500 60,000 35,000 0 $581,250 Q2 $0 0 4,000 5,000 0 $9,000 $661,000
1.00 1.00 1.00 6.00 1.00 3.00 1.00 2.00 3.00 2.00 2.00 0.00 24.00 Q3 $75,000 56,250 50,000 40,000 75,000 22,500 45,000 25,000 45,000 52,500 60,000 35,000 0 $581,250
1.00 1.00 1.00 6.00 1.00 3.00 1.00 2.00 4.00 2.00 2.00 0.00 25.00 Q4 $75,000 56,250 50,000 40,000 75,000 22,500 45,000 25,000 45,000 70,000 60,000 35,000 0 $598,750
4.00 4.00 4.00 24.00 4.00 12.00 4.00 8.00 13.00 8.00 8.00 0.00 97.00 Notes $300,000 225,000 200,000 160,000 300,000 90,000 180,000 100,000 180,000 227,500 240,000 140,000 0 $2,342,500 Annual total $600,000 30,000 45,000 5,000 5,000 $685,000 $685,000 Notes
Q3 Q4 Additional purchases $0 $0 4,000 4,000 3,000 8,000 0 0 5,000 0 $12,000 $12,000 $673,000 $685,000
Rev: 8/12/2008
[Company Name] Annual Operating Budget—Services
[Date]
Pro Forma Financial Statements—Income Statement, Balance Sheet, and Cash Flow Summary
Pro forma annual income statement
Headcount summary Service operations Sales and marketing General and administrative Total headcount Revenues Cost of sales Gross margin Margin contribution % Checkpoint: Revenue per employee from this budget Financial Plan Revenue per Employee Targeted revenue employee Expenses Service operations Sales and marketing General and administrative Total expenses Operating profit Other gains (losses) Other income Total income Taxes Net income 30.0% Q1 $714,060 841,560 895,160 $2,450,780 $1,049,220 0 5,000 1,054,220 316,270 737,950 Q2 $779,690 816,560 906,610 $2,502,860 $1,397,140 21,000 5,000 1,423,140 426,940 996,200 Q3 $803,130 930,000 898,210 $2,631,340 $1,368,660 20,000 5,000 1,393,660 418,100 975,560 Q4 $840,630 982,500 921,690 $2,744,820 $1,455,180 35,000 5,000 1,495,180 448,550 1,046,630 Q1 23.00 16.00 24.00 63.00 $4,500,000 1,000,000 $3,500,000 78% Q2 25.00 16.00 24.00 65.00 $5,000,000 1,100,000 $3,900,000 78% Q3 26.00 19.00 24.00 69.00 $5,200,000 1,200,000 $4,000,000 77% Q4 27.00 20.00 25.00 72.00 $5,500,000 1,300,000 $4,200,000 76% 27.00 20.00 25.00 72.00 $20,200,000 4,600,000 $15,600,000 77% $280,556 $270,000
$3,137,510 3,570,620 3,621,670 $10,329,800 $5,270,200 76,000 20,000 5,366,200 1,609,860 3,756,340
Pro forma annual balance sheet
Assets Cash Accounts receivable Other current assets Total current assets Depreciable assets Accumulated depreciation Land Net property, plant, and equipment Other assets Total assets Liabilities and equity Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Notes payable Other long-term liabilities Total long-term liabilities Total liabilities Common stock Retained earnings Cumulative net income Net equity Total liabilities and equity Beginning balance 50,000 40,000 20,000 110,000 645,000 0 640,000 1,285,000 100,000 $1,495,000 Q1 808,550 40,000 20,000 868,550 652,000 32,600 640,000 1,259,400 100,000 $2,227,950 Q2 1,823,800 40,000 20,000 1,883,800 661,000 65,650 640,000 1,235,350 100,000 $3,219,150 Q3 2,816,010 40,000 20,000 2,876,010 673,000 99,300 640,000 1,213,700 100,000 $4,189,710 Q4 3,879,890 40,000 20,000 3,939,890 685,000 133,550 640,000 1,191,450 100,000 $5,231,340 Annual total 3,879,890 40,000 20,000 3,939,890 685,000 133,550 640,000 1,191,450 100,000 $5,231,340
$20,000 10,000 10,000 $40,000 $150,000 0 5,000 $155,000 $195,000 $1,000,000 300,000 0 $1,300,000 $1,495,000
$20,000 10,000 10,000 $40,000 $145,000 0 5,000 $150,000 $190,000 $1,000,000 300,000 737,950 $2,037,950 $2,227,950
$20,000 10,000 10,000 $40,000 $140,000 0 5,000 $145,000 $185,000 $1,000,000 300,000 1,734,150 $3,034,150 $3,219,150
$20,000 10,000 10,000 $40,000 $135,000 0 5,000 $140,000 $180,000 $1,000,000 300,000 2,709,710 $4,009,710 $4,189,710
$20,000 10,000 10,000 $40,000 $130,000 0 5,000 $135,000 $175,000 $1,000,000 300,000 3,756,340 $5,056,340 $5,231,340
$20,000 10,000 10,000 $40,000 $130,000 0 5,000 $135,000 $175,000 $1,000,000 300,000 3,756,340 $5,056,340 $5,231,340
Pro forma annual cash flow summary
Sources of funds From operations Add depreciation Net changes in balance sheet accounts Current assets Current liabilities Other sources of funds Other gains (losses) Other Total sources Uses of funds Repurchase of stock Debt retirement Purchase of equipment and assets Other uses Total uses Net change in cash Cumulative cash Beginning balance Ending balance Q1 $732,950 32,600 Q2 $970,200 33,050 Q3 $950,560 33,650 Q4 $1,006,630 34,250
0 0
0 0
0 0
0 0
0 5,000 $770,550
21,000 5,000 $1,029,250
20,000 5,000 $1,009,210
35,000 5,000 $1,080,880
0 -5,000 -7,000 0 -$12,000 758,550 758,550 $50,000 $808,550
0 -5,000 -9,000 0 -$14,000 1,015,250 1,773,800 $808,550 $1,823,800
0 -5,000 -12,000 0 -$17,000 992,210 2,766,010 $1,823,800 $2,816,010
0 -5,000 -12,000 0 -$17,000 1,063,880 3,829,890 $2,816,010 $3,879,890
Summary trend data for chart Quarterly revenue Quarterly margin Quarterly net income (loss) Quarterly cash flow Quarterly total assets
Q1 4,500,000 3,500,000 737,950 758,550 2,227,950
Q2 5,000,000 3,900,000 996,200 1,015,250 3,219,150
Q3 5,200,000 4,000,000 975,560 992,210 4,189,710
Q4 5,500,000 4,200,000 1,046,630 1,063,880 5,231,340
Notes
Taken from 3-year financial plan Taken from 3-year financial plan
Compare to financial plan From Input sheet
Notes
Taken from operations section Taken from sales and marketing section Taken from general and administrative section
Rounded calculation based on input sheet rate
Notes
Notes
Quarterly Trend for Key Financial Metrics
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Q1 Q2 Q3 Q4
Quarterly revenue
Quarterly margin
Quarterly net income (loss)
Quarterly cash flow
Quarterly total assets