Customized operating expense formulas can be used in lines 7 to 9 of the Financial Projections Template to link operating expenses to another template cell value such as revenue, this allows amendments to be made to the estimated operating expenses for each of the five years without having to manually enter each amount.
To simplify the process of expense forecasting there are various techniques which can be employed to link each type of expense to other variables (cost drivers), such as revenue or headcount, which have already been forecast in the financial projections. Of course there will always be expenses which are fixed in nature, which cannot be linked to other variables and need to be estimated in absolute monetary terms.
As a business expands, its operating costs increase, unfortunately, they do not increase gradually but tend to go up in steps. These step increases cause the break even point of the business to make step jumps. A business must be aware of this to ensure that any planned increase in operating expenses is matched by a rapid increase in revenue to bring the business back to a break even.
This telephone expense calculator uses the number of employees a business has as the basis for calculating the telephone expense for the next five years.
The telephone expense forms part of the operational expenses which are included in the income statement of the business plan financial projections.
This business operating expense calculator template will help you in calculating the operating expenses of your business for use in our Financial Projections Template.
This calculator is particularly suited to internet business models as it splits the expenses into research & development, systems development & support, customer service, sales & marketing, and general & administrative expenses.
General and administration expenses are included in the income statement of the business plan financial projections, as part of operating expenses.
This expense category includes any costs relating to the day to day operations of the business which are not directly related to the product, research and development, or sales and marketing. General and administrative expenses include such costs as general management staff salaries, and legal and professional costs.
Sales and marketing operating expenses are included in the income statement in the business plan financial projections.
The expense is a result of the activities in the marketing plan, and sales and marketing expenses examples include staff costs such as salaries, customer service costs, advertising, promotion, and a wide range of other expenses which need to be classified.
This business plan headcount and staff costs calculator will help you to calculate staff related costs for use in the Financial Projections Template and your business plan.
Headcount and staff costs form part of operating expenses, and can be a major expense to consider when preparing a financial projection. Staff costs relate to the costs of having employees, they include the basic payroll expenses such as wages and salaries, but also benefits, perks and employer taxes.
Operating expenses, sometimes referred to as business overheads or fixed costs, are shown on the income statement. They are all the support costs of a business which are not directly attributable to the goods or services that the business is producing.
Operating expenses are the indirect recurring costs of running a business such as research and development, sales and marketing, and general and administrative costs.