Accounting Business Plan by kuc14840

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									Business Plan Financials - Accrual Accounting

Accrual accounting presents the most accurate information on a bussiness's financial status. Sales are
recognized when the product or service is actually delivered. Expenses are recognized when the obligation is
incurred, such as receipt of parts or material. The IRS normally requires accrual accounting when a
business has substantial inventory or is incorporated.

This Workbook contains the following worksheets for development of the Business Plan Financial Section.

           Start-Up Worksheet
           Income Statement - Year 1
           Cash Flow Statement- Year 1
           Income Statement - Years 1 through 3
           Cash Flow Statement- Years 1 through 3
           Balance Sheet - Years 1 through 3

The financial projection worksheets are provided as an aid in developing the Business Plan. They are not
intended to replace services of a qualified accountant. An accountant current on tax matters, depreciation,
etc. should be part of the business owner's management team in developing a Business Plan and
operating the business.

Before starting to prepare your financial projections confirm that accrual accounting is applicable to your
business and whether you or your business entity will pay income taxes due. Answers to these questions
may be found in IRS publications, but it is usually much faster to seek the advice of an accountant.

Some spreadsheet cells are highlighted in yellow to indicate they are not for data entry. Protection was
added to preclude inadvertant data entry in these cells. The white cells are not protected and are for data
entry. If protection causes a problem, it may be removed by clicking on Tools / Protection / Unprotect Sheet.
This must be done for each spreadsheet individually. If protection is removed, use caution to avoid
destruction of equations in the yellow cells. The percentage cells will indicate #DIV/0! until actual numbers
appear in the column totals.

Generally line item titles on unprotected cells may be changed and the change will transfer to protected cells
in subsequent spreadsheets. This was done to provide flexibility in tailoring the spreadsheets to a specific
business. The user should always check to ensure that changes are carried over as intended and
associated equations are correct.

Period accounting activity is to be entered in most of the spreadsheet cells. However, three cells on
Cash Flow spreadsheets reflect the change in the Period Ending Account Balance with a plus or minus sign.
These are: Payables, Inventory and Accounts Receivable. Thus, if Payables increase from $1,000
to $1,500 the entry for that period would be +500. If Payables decreased the number would be negative.
The same principle is applied to Inventory and Accounts Receivable.

When starting Financials for a new business complete the Start-Up Worksheet first. Totals for the two
columns of numbers must be equal. If they are not an error message will appear on the line above
the totals. Do not proceed until corrections have been made. When totals are equal an OK To Proceed
message will appear. Then start the Income Statement for Year 1. Next do the Cash Flow Statement for
for Year 1. It may be necessary to go back and adjust the amount invested by the owner, the amount
borrowed or other items to maintain the proper Working Capital. Finally complete Years 2 and 3.

If you are preparing financials for an existing business seeking additional financing or for other reasons
do not wish to use the Start-Up Worksheet delete the words "From Start-Up Worksheet" in column B
of the Income Yr 1 and Cash Flow Yr 1 pages. Do not delete the entire column.
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YOUR BUSINESS NAME                    STARTUP CASH FLOW WORKSHEET

SOURCES OF FUNDS

Owner's Investment                                        $0
Loan Proceeds - Bank                                       0
Loan Proceeds - Other                                      0


                 Total Available                           0

APPLICATION OF FUNDS


Inventory        Product                                            $0
                 Raw Material                                        0
                 Shop Supplies                                       0


                 Total Inventory                                    0

FIXED ASSETS     Shop Equipment                                     0
                 Office Equip & Software                            0
                 Furniture                                          0
                 Retail Counters & Fixtures                         0
                 Remodeling & Refurbishment                         0
                 Automotive Vehicles                                0


                 Total Fixed Assets                                 0

DEPOSITS         Insurance Workers Comp                             0
                           Liability                                0
                           Property                                 0
                           Auto                                     0
                 Rent                                               0
                 Leases                                             0
                 Utilities Electric                                 0
                           Gas                                      0
                           Water                                    0


                 Total Deposits                                     0

Expensed Items   Accounting                                         0
                 Advertising                                        0
                 Legal                                              0
                 Licenses & Permits                                 0
                 Misc                                               0
                 Office Supplies                                    0
                 Small Tools                                        0
               Total Expensed                              0

ADJUSTMENTS    Accounts Payable               0


CASH ON HAND FOR OPENING
              Checkbook Balance                            0
              Petty Cash                                   0
                                                           0

               Total Cash on Hand                          0
Entries Balance OK to Proceed to Year 1 Income Statement

TOTALS                                       $0            $0
YOUR BUSINESS NAME                                               INCOME STATEMENT YEAR 1

           Month         From Start-Up          1           2            3           4           5           6           7           8           9          10          11          12       Total
INCOME                      Worksheet
Sales Product A                                 0           0            0           0           0           0           0           0           0           0           0           0              0
Sales Product B                                 0           0            0           0           0           0           0           0           0           0           0           0              0
Sales Product C                                 0           0            0           0           0           0           0           0           0           0           0           0              0
Total Income                       $0          $0          $0           $0          $0          $0          $0          $0          $0          $0          $0          $0          $0              0

COST OF GOODS SOLD
Shop Labor                                      0           0            0           0           0           0           0           0           0           0           0           0              0
Payroll Taxes                                   0           0            0           0           0           0           0           0           0           0           0           0              0
Workers Comp                                    0           0            0           0           0           0           0           0           0           0           0           0              0
Material                                        0           0            0           0           0           0           0           0           0           0           0           0              0
Shop Supplies
                                                0           0            0           0           0           0           0           0           0           0           0           0              0
Total COGS                         $0          $0          $0           $0          $0          $0          $0          $0          $0          $0          $0          $0          $0              0

GROSS INCOME                                   $0          $0           $0          $0          $0          $0          $0          $0          $0          $0          $0          $0              0
% of Total Income                        #DIV/0!     #DIV/0!      #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!

FIXED EXPENSE
Salary Owner                                     0           0            0           0           0           0           0           0           0           0           0           0             0
Salary Office & Sales                            0           0            0           0           0           0           0           0           0           0           0           0             0
Bonuses                                          0           0            0           0           0           0           0           0           0           0           0           0             0
Payroll Taxes                                    0           0            0           0           0           0           0           0           0           0           0           0             0
Benefits                                         0           0            0           0           0           0           0           0           0           0           0           0             0
Workers Comp                                     0           0            0           0           0           0           0           0           0           0           0           0             0
Accounting/Legal                    0            0           0            0           0           0           0           0           0           0           0           0           0             0
Advertising/Promotion               0            0           0            0           0           0           0           0           0           0           0           0           0             0
Bank & CC Charges                                0           0            0           0           0           0           0           0           0           0           0           0             0
Depreciation                                     0           0            0           0           0           0           0           0           0           0           0           0             0
Insurance                                        0           0            0           0           0           0           0           0           0           0           0           0             0
Interest                                         0           0            0           0           0           0           0           0           0           0           0           0             0
Licenses & Permits                  0            0           0            0           0           0           0           0           0           0           0           0           0             0
Misc                                0            0           0            0           0           0           0           0           0           0           0           0           0             0
Office Supplies                     0            0           0            0           0           0           0           0           0           0           0           0           0             0
Rent                                             0           0            0           0           0           0           0           0           0           0           0           0             0
Repairs & Maintenance                            0           0            0           0           0           0           0           0           0           0           0           0             0
Small Tools                         0            0           0            0           0           0           0           0           0           0           0           0           0             0
Taxes                                            0           0            0           0           0           0           0           0           0           0           0           0             0
Telephone                                        0           0            0           0           0           0           0           0           0           0           0           0             0
Trash Service                                    0           0            0           0           0           0           0           0           0           0           0           0             0
Travel & Entertainment                           0           0            0           0           0           0           0           0           0           0           0           0             0
Utilities                                        0           0            0           0           0           0           0           0           0           0           0           0             0
Vehicle Operating Exp                            0           0            0           0           0           0           0           0           0           0           0           0             0
                                                 0           0            0           0           0           0           0           0           0           0           0           0             0
Total Fixed Expense                $0          $0          $0           $0          $0          $0          $0          $0          $0          $0          $0          $0          $0              0
% of Total Income                        #DIV/0!     #DIV/0!      #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!

NET INCOME before taxes            $0          $0          $0           $0          $0          $0          $0          $0          $0          $0          $0          $0          $0              0
% of Total Income                        #DIV/0!     #DIV/0!      #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!     #DIV/0!
YOUR BUSINESS NAME                                                 CASH FLOW YEAR 1

         Month             From Start-Up            1          2          3           4          5          6          7           8          9         10         11         12            TOTAL
SOURCES OF FUNDS           Worksheet
Beginning Cash                                      0         $0         $0         $0          $0         $0         $0         $0          $0         $0         $0         $0

Owner Investment                      0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Loan Proceeds                         0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Pre-Tax Income                        0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Depreciation                                        0          0          0           0          0          0          0           0          0          0          0           0               $0
Accounts Payable Change               0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Other Accrued Exp Change                            0          0          0           0          0          0          0           0          0          0          0           0               $0

TOTAL AVAILABLE                      $0           $0          $0         $0         $0          $0         $0         $0         $0          $0         $0         $0         $0                $0

APPLICATION OF FUNDS
Fixed Assets                          0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Security Deposits                     0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Inventory Change                      0             0          0          0           0          0          0          0           0          0          0          0           0               $0
Acc'ts Receivable Change                            0          0          0           0          0          0          0           0          0          0          0           0               $0
Loan Principal Payments                             0          0          0           0          0          0          0           0          0          0          0           0               $0
Distributions To Owner                              0          0          0           0          0          0          0           0          0          0          0           0               $0
                                                    0          0          0           0          0          0          0           0          0          0          0           0               $0

TOTAL APPLIED                        $0           $0          $0         $0         $0          $0         $0         $0         $0          $0         $0         $0         $0                $0

PERIOD NET CASH FLOW                 $0           $0          $0         $0         $0          $0         $0         $0         $0          $0         $0         $0         $0                $0

ENDING CASH                          $0           $0          $0         $0         $0          $0         $0         $0         $0          $0         $0         $0         $0            $       -


                                           Explanatory Notes - not to be included in your Business Plan

                                           1. Depreciation was deducted as an expense in determining Income. Since there was no cash outlay, an offsetting entry is made on the
                                                      Cash Flow Statement.
                                           2. An increase in Accounts Payable is the same as receiving loans from the suppliers and thus increases funds available
                                           3. An increase in Inventory requires the application of cash decreasings funds available.
                                           4. An increase in Accounts Receivable is the same as lending to customers decreasing cash available.
                                           5. Repayment of loan principal is a cash disbursement. Loan interest is an expense on the Income Statement
                                           6. Determine whether you or the business will pay income tax on business income. If the business will pay income tax an income tax line should
                                                      be added to the Application of Funds category and an equivalent adjustment made to Equity on the Balance Sheet
YOUR BUSINESS NAME                        INCOME STATEMENT YEARS 1 through 3

            Year                     1            2                3
INCOME
Sales Product A                      0            0                0
Sales Product B                      0            0                0
Sales Product C                      0            0                0
Total Income                        $0           $0               $0

COST OF GOODS SOLD
Shop Labor                           0            0                0
Payroll Taxes                        0            0                0
Workers Comp                         0            0                0
Material                             0            0                0
Shop Supplies                        0
                          0          0            0                0
Total COGS                          $0           $0               $0

GROSS INCOME                        $0           $0               $0
% of Total Income             #DIV/0!      #DIV/0!          #DIV/0!

FIXED EXPENSE
Salary Owner                          0            0                0
Salary Office & Sales                 0            0                0
Bonuses                               0            0                0
Payroll Taxes                         0            0                0
Benefits                              0            0                0
Workers Comp                          0            0                0
Accounting/Legal                      0            0                0
Advertising/Promotion                 0            0                0
Bank & CC Charges                     0            0                0
Depreciation                          0            0                0
Insurance                             0            0                0
Interest                              0            0                0
Licenses & Permits                    0            0                0
Misc                                  0            0                0
Office Supplies                       0            0                0
Rent                                  0            0                0
Repairs & Maintenance                 0            0                0
Small Tools                           0            0                0
Taxes                                 0            0                0
Telephone                             0            0                0
Trash Service                         0            0                0
Travel & Entertainment                0            0                0
Utilities                             0            0                0
Vehicle Operating Exp                 0            0                0
                          0           0            0                0
Total Fixed Expense                 $0           $0               $0
% of Total Income             #DIV/0!      #DIV/0!          #DIV/0!

NET INCOME before taxes             $0           $0               $0
% of Total Income             #DIV/0!      #DIV/0!          #DIV/0!
YOUR BUSINESS NAME              CASH FLOW YEARS 1 Through 3

           Year            1           2                3
SOURCES OF FUNDS
Beginning Cash             $0         $0               $0

Owner Investment           0           0                0
Loan Proceeds              0           0                0
Net Income                 0           0                0
Depreciation               0           0                0
Accounts Payable Change    0           0                0
Other Accrued Exp Change   0           0                0

TOTAL AVAILABLE            $0         $0               $0

APPLICATION OF FUNDS
Fixed Assets               0           0                0
Security Deposits          0           0                0
Inventory Change           0           0                0
Acc'ts Receivable Change   0           0                0
Loan Principal Payments    0           0                0
Distributions To Owner     0           0                0
                           0                            0

TOTAL APPLIED              $0         $0               $0

PERIOD NET CASH FLOW       $0         $0               $0

ENDING CASH                $0         $0               $0
YOUR BUSINESS NAME                     BALANCE SHEET YEARS 1 - 3

                                END                END               END
                              YEAR 1             YEAR 2            YEAR 3
ASSETS
Current Assets
 Cash                              0                   0                0
 Accounts Receivable               0                   0                0
 Inventory                         0                   0                0
Total Current Assets              $0                  $0               $0

Fixed Assets                       0                   0                0
  Less: Depreciation               0                   0                0
Total Net Fixed Assets            $0                  $0               $0

Other Assets
 Security Deposits                 0                  0                 0

TOTAL ASSETS                      $0                  $0               $0

LIABILITIES & EQUITY

Current Liabilities
 Accounts Payable                  0                   0                0
 Other Accrued Expenses            0                   0                0
Total Current Liabilities         $0                  $0               $0

Long Term Liabilities
 Loan Balance                      0                  0                 0

Total Long Term Liabilities       $0                  $0               $0

TOTAL LIABILITIES                 $0                  $0               $0

EQUITY
 Owner's Investment                0                   0                0
 Retained Earnings                 0                   0                0
 Distributions to Owners           0                   0                0
 Current Year Income               0                   0                0
TOTAL EQUITY                      $0                  $0               $0

TOTAL LIAB. & EQUITY              $0                  $0               $0

								
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