PURPOSE OF MODEL
 
Highly versatile and user-friendly Excel model for the p   reparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline across 3 scenarios for a generic new or existing business. The model allows businesses to plan for uncertainty across the turbulence caused by the COVID-19 pandemic.
 
The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations.
 
 
KEY OUTPUTS
 
The model is generic and not industry-specific. The key outputs include:
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) for all 3 scenarios, presented on a monthly basis across up to 5 years and summarised on an annual basis.
Dashboard with:
Summarised projected Income Statement and Balance Sheet for each of the scenarios;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item for each of the scenarios;
List of key ratios including Average revenue growth, Average profit margins, Average return on assets and equity and Average Debt to Equity ratio for each of the 3 scenarios;
Bar charts summarising income statement and Balance Sheet projections for each of the scenarios;
Gross Profit margin by revenue stream in table and bar-chart format for each of the 3 scenarios.
Variance analysis across the 3 scenarios with bar charts comparing: revenue, net profit, total assets and net assets for the 3 scenarios.
 
 
KEY INPUTS
 
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly. 
 
Setup Inputs:
Name of business;
Currency;
First projection year and month;
Naming of scenarios
Naming for revenue streams, variable costs, staff costs, other expenses and fixed assets;
Sales tax applicability for revenue streams, variable costs, other expenses and fixed assets.
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs for each of the 3 scenarios:
Revenue inputs including sales volume, sales prices and average credit terms offered;
Cost of goods sold included percentage of revenue, safety stock percentage and average credit terms received;
Variable cost inputs including % of revenue applicable to and cost percentage of revenue
Other costs inputs including staff costs, marketing costs and fixed costs;
Sales and corporate tax inputs including rate and payment periods;
Dividend inputs including amount (percentage of retained earnings) and frequency;
Fixed Assets including addition amounts and useful life;
Borrowings including addition amounts and interest rate;
Share Capital additions;
Discount rate inputs (for valuation calculation).
 
 
MODEL STRUCTURE
 
The model comprises of 12 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’, 'i_Assump_S1', 'i_Assump_S2' and , 'i_Assump_S3'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats' and ‘o_Dashboard’.
 
System tabs include:
A 'Front Sheet' containing a disclaimer, instructions and contents; 
A Checks dashboard containing a summary of checks by tab.
 
 
KEY FEATURES
 
Other key features of this model include the following:
The model follows good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
The model contains a flexible timeline that allows for a mix of actual and forecast period across a 5-year period. This allows projections to be easily rolled forward;
Timeline is split on a monthly basis and summarised on an annual basis; 
The model allows the user to model 10 separate revenue streams on a Price x Volume basis;
The model is not password protected and can be modified as required following download;
The model is reviewed using specialised model audit software to help ensure formula consistency and significantly reduce risk of errors;
Costs are split into: variable and other costs for better driver-based forecasting;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Scenarios – 3 scenarios
Revenue streams – 10 categories;
Cost of goods sold – 1 category for each revenue stream (10 categories in total);
Variable costs – 5 categories
Staff costs – 8 categories;
Marketing costs – 5 categories;
Other expenses – 15 categories;
Fixed assets – 5 categories;
Borrowings – 3 facilities
Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
Business Name, currency, starting projection period and scenario names are fully customisable;
Revenue, Cost and Fixed Asset descriptions are fully customisable;
The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately; 
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors. 
 
 
 
MODIFICATIONS & SUPPORT
 
If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on hello@useprojectify.com