Financial Budget Model for Business&Projects
Instructions
1. This model only contains the main financial items and leave the others neglected .
2. Products tax is calculated with a average scale and included in “Products and Pricing” table. Other tax is neglected and can be added to the AMFT Expenditures sheet if necessary, the capital sauce, income statement and cash flow will be affected.
3. Receivables, payables, deposits and advances are calculated in an equivalent scale and if the differences get far, be careful that Capital Source&Expenditure table and Budgeted Cash Flow ,even other tables may occur errors!
4. In cash flow table, three main kinds of cash, i.e. Investment,Financing,Operation are mixed and not in order of the standard table. but it’s easier to be understood. If necessary, it’s easy to be classified.
5.Liabilities and Equity are both exactly budgeted to meet the Min requirement of Capital sources to balance the Expenditure. If it’s more than that, be careful that the cash and other table may vary. (the formula does not include the factor of change of them, fortunately it does not happen normally, because we don’t want invest any extra money for the payment of extra interest.)
6. Please always confirm the “previous Fiscal Cash Balance used for current capital source is always <(=)the available previous fiscal cash balance and check if there is any balance after the previous cash balance is used for the current capital source. If there is any, it should be added to the cash balance of current term in the Balance Sheet. That is why there is always a formula with (X-Y) included in the cash row of the Balance Sheet even though X-Y is usually zero and possible happens to be not with the terms going longer.
7.Be careful that an extra loan for the payment of interest is exactly the same as the interest itself in numbers but meaning very differently. It’s part of the debt and has to be paid off together with the main part of the debt even though you have finished the interest payment with it!
8. If unnecessary, always simplify the budget plan by setting non-important factors like Prepaid expenses/customer prepayment/Assets/Financing to Zero or equivalent rate.
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