How to Find the Interest Rate

A small business will purchase long term assets (fixed assets) such as plant, machinery, fixtures, vehicles, and computers for use within it’s operations. With the exception of possibly land, all these long term assets have a limited life span due to wear and tear and obsolescence.

Depreciation is the name given to the expense charged to the income statement each accounting period to represent the reduction in value of these long term assets. The purpose of depreciation is to set aside an amount of profit to replace the asset in the future.

Last modified August 22nd, 2019 by Michael Brown
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How to Determine Depreciation Rate

A small business will purchase long term assets (fixed assets) such as plant, machinery, fixtures, vehicles, and computers for use within it’s operations. With the exception of possibly land, all these long term assets have a limited life span due to wear and tear and obsolescence.

Depreciation is the name given to the expense charged to the income statement each accounting period to represent the reduction in value of these long term assets. The purpose of depreciation is to set aside an amount of profit to replace the asset in the future.

Last modified August 22nd, 2019 by Michael Brown
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How to Forecast Operating Expenses

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.

Last modified October 21st, 2019 by Michael Brown
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How to Forecast Revenue

Revenue is shown on the income statement and is the starting point for using the financial projections template. The revenue forecast is usually the most difficult part of the business financial projections to forecast.

We have created a free sales forecasting spreadsheet to assist you in estimating revenue, which is available for download at the link below.

Last modified October 8th, 2019 by Michael Brown
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How to Make Financial Projections

The listing below acts as a handy reference showing how to do financial projections for a business plan. It is designed as an overview to walk you through the process of creating your business plan financial projections using the free template.

Last modified August 12th, 2020 by Michael Brown
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