Finance

Finance

Financial plan is a summary of your business’s financial position and a forward-looking projection for growth that includes estimates of revenues, expenses and other values over several years. The Planium Pro Lite finance plan is high-level emphasis and easy to write plan that pinpoints only key financial elements.

It has three strategic steps, followed by report and benchmark.

Step One: Setup

To complete this section, on the left-hand side menu bar, click ‘Finance’.

Use the selections to configure the finance settings below. These options are used throughout the Finance module and can be changed at any time.

• Click on ‘Enter a Start Date’ to establish a start date for your financial projections
• Click on ‘Enter a Currency’ to choose the currency for your business activities

Click on ‘Next’ to start the financial section.

Step two: Key Financial inputs for the current year

1. Sales: Enter the total sales revenue for the current year period.
2. Cash on Hand: Enter the current combined cash balance, including held on site cash and petty cash, or overdraft (enter as negative).
3. Direct Costs:

• Material: Enter the direct material cost for the current year period.
• Labor: Enter the direct labour cost for the current year period.
• Other: Enter the direct other selling cost for the current year period.

Click on ‘Next’ to proceed further.

Step Three: Financial Projections

You need to have an estimate of your business growth for the next four years of operation. While it is tempting to be overly positive about your business growth, it is important to be as realistic as possible with financial projections.

To change the growth value, just scroll along the line of the respective year’s projections.

Click on ‘Next’ to see the ‘Report’ section.

Report

Based on the financial data provided in the previous sections and your assumptions about business growth, you can see an automatically generated report that includes: the Profit and Loss Statement, the Balance Sheet, the Cash Flow Statement, and Valuation. You can print the report or export it to .docx or .pdf.

Benchmark

Sometimes it is hard to guess a percentage growth for your projections and gauge how well your business is doing, so the ‘Benchmark’ section gives you an opportunity to refer to reliable sources that provide financial data based on the real-world experience of companies in most industries. Benchmarks represent key financial ratios calculated from information provided by businesses on activity statements and tax returns.