Accounting Equation in a Business Plan

The accounting equation may be expressed as Assets = Liabilities + Equity and is the basis for all accounting using the double entry bookkeeping system. One side of the equation shows the assets of the business whereas the other shows how those assets are funded. The basic accounting equation underlies all financial projections based on the three statement financial model.

Accounting Equation in a Business Plan June 6th, 2018Team
Read more

Links Between Financial Statements in a Business Plan

The financial projections template produces an income statement, balance sheet and cash flow statement for the business. These 3 financial statements appear initially to be unconnected; however, closer investigation shows that they are linked and a change in one statement substantially impacts the other statements. The entrepreneur need to understand these connections in order to be able to understand the financial performance of the business.

Links Between Financial Statements in a Business Plan June 6th, 2018Team
Read more

Financial Statement Analysis Report

As part of the process of producing financial projections for a start-up business it may be necessary to undertake a simple financial statement analysis of competitor businesses. This process will help the entrepreneur understand what drives the financial model and assist in generating reasonable assumptions for the business plan.

Financial Statement Analysis Report June 12th, 2018Team
Read more

Understanding Cash Flow Statements in Startups

An understanding of the cash flow statement allows the startup entrepreneur to manage the cash flow of a business effectively. In doing so they will avoid many of the cash flow problems which can damage or even destroy what would have been a successful startup operation.

Understanding Cash Flow Statements in Startups April 5th, 2017Team
Read more

Budget vs Forecast vs Projection vs Pro Forma

The terms financial budget, financial forecast, financial projection and pro forma financial statement are often used to refer to the same thing. However, while they have a very similar format, normally comprising a balance sheet, income statement, and cash flow statement shown over a period of months or years, they are each based on a very different set of assumptions.

Budget vs Forecast vs Projection vs Pro Forma March 27th, 2017Team
Read more

Pro Forma Financial Statements

The terms pro forma financial statements, financial projections, financial forecasts, and financial budgets are often used interchangeably, but they are not the same thing.

Pro forma financials simply refers to a set of financial statements in the usual format (balance sheet, income statement, and cash flow statement), which have been prepared in order to show the effects of a transaction on the historical financial statements prior to the transaction actually taking place.

Pro Forma Financial Statements May 24th, 2017Team
Read more

Cash Flow Forecast for Start Up Business

The cash flow forecast is one of the main financial statements for business plan financials. The cash flow forecast shows the cash paid and cash received by the business during an accounting period.

Cash Flow Forecast for Start Up Business March 28th, 2017Team
Read more

Income Statement Forecast

The income statement forecast, sometimes called the profit and loss forecast, is one of the main statements for business plan financials. The income statement forecast shows a business’s financial performance over an accounting period. The accounting period can be any length but is usually a month or a year.

There are many income statement forms, the layout below acts as a quick reference, and sets out the most commonly encountered accounting terms when dealing with a business plan income statement forecast.

Income Statement Forecast October 12th, 2016Team
Read more

Balance Sheet Forecast in a Business Plan

The projected balance sheet forecast is one of the main statements for business plan financials and is sometimes referred to as the statement of financial position. The balance sheet forecast shows a financial snapshot of the business at a specific point in time, usually at the end of  each accounting year.

There are many balance sheet forms, the layout below acts as a quick reference, and sets out the most commonly encountered accounting terms when dealing with a business plan balance sheet forecast.

Balance Sheet Forecast in a Business Plan February 14th, 2018Team
Read more

10 Common Accounting Terms You Should Know

In order to understand and be able to explain your financial projections, you need be become familiar with a few common accounting terms. The 10 accounting terms listed below are some of the most often used terms, and should help get you started.

10 Common Accounting Terms You Should Know February 17th, 2018Team
Read more

3 Financial Statements

There are three main financial statements you should know to be able to operate and plan your business effectively, the balance sheet statement, income statement, and the cash flow statement.

3 Financial Statements February 17th, 2017Team
Read more

You May Also Like