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Financial plan in a business project. Business plan. Sample with calculations What does a financial business plan mean

Any modern company that conducts economic activities in a particular area of business is engaged in planning. Planning in business plays, if not a leading, then at least an important role in matters of economic efficiency and is aimed at maximizing the efficiency that a business can show.

The financial plan of an enterprise is a subspecies of a group of managerial, interrelated documents, which is compiled and maintained for long-term planning and operational management of the resources available to the company in cash. Simply put, thanks to the financial plan, a balance is ensured between planned and actual receipts of revenue, and on the other hand, planned and actual expenses for the company's activities.

The balance of the financial and economic state of the company, which is achieved through high-quality financial planning, is perhaps the main profit of using such a management tool as the financial plan of the enterprise.

Types of financial plans of a modern enterprise

The fierce competition in today's market forces businesses to work much harder, looking for resources and opportunities to increase competitiveness within their activities. Subjectively, financial plans, as well as their variable use in business operational issues, allow solving these management tasks based precisely on the internal plans and resources of the company, avoiding, if possible, the serious dependence of the business on a continuous flow of borrowing. Or, if not to solve, then at least to form a balance within the economic issues of the organization through financial planning tools.

It should be noted that financial plans at enterprises differ not only in the size of the planning period (duration), but also in composition. The composition of indicators or the composition of planning articles will differ in two parameters: purpose and degree of detail. Relatively speaking, for one company, the grouping of expenses “utility expenses” is sufficient, and for another, the planned and actual value of each indicator of the grouping is important: water, electricity, gas supply, and others. Therefore, the main classification of financial plans is considered to be the classification by the planning period, within which each specific company independently chooses the level of detail of the financial plan.

As a rule, modern companies in Russia use three main types of financial plans:

Fin. short-term plans: the maximum planning horizon is one year. Used for operational activities and may include the maximum detail of planned and actual indicators managed by the company's team.
Fin. medium-term plans: the planning horizon is more than a year, but not more than five years. Used for planning in the horizon of 1-2 years, include investment and modernization plans that contribute to the growth or strengthening of the business.
Fin. long-term plans: the longest planning horizon, starting from five years, which includes the interpretation of the long-term financial and operational goals of the company.

Figure 1. Types of financial plans of modern companies.

Development of a financial plan for a modern enterprise

The development of a financial plan for an enterprise is an individual process for each individual enterprise, depending on the internal economic characteristics and talent of the financial block specialists. At the same time, any approach, even the most exotic one, to the financial planning process requires financiers to include mandatory, that is, identical for all, financial data when drawing up financial plans:

Planned and operational data on the volume of production and sales;
Planned and actual budget data of subdivisions;
Expenditure budget data;
Revenue budget data;
Data on accounts payable and accounts receivable;
Data of budgets of taxes and deductions;
Regulatory data;
BDDS data;
Specific data of management accounting of a particular enterprise.

Figure 2. Composition of data for the financial plan.

In practice, the role of financial plans in modern business is enormous. It can be said that financial plans are gradually replacing traditional business plans because they contain only specific information and allow management teams to constantly monitor the most important values. In fact, for middle and top managers, the system of financial plans drawn up at the enterprise is the most dynamic tool. That is, any manager who has access to management information and the competence to manage such information can continuously improve the performance of the department entrusted to him through the use of various combinations of financial planning tools.

Form of the financial plan of the enterprise and management tasks solved with the help of the system of financial plans

Today, there is no approved form or recognized standard of a financial plan for an enterprise, and the variability of the forms of this management tool is due to the internal specifics of enterprises. In management practice, there are traditional tabular forms of the system of financial plans of enterprises, own IT developments in the form of special programs and bundles of these programs that provide data import and export, and specialized boxed software systems.

In order for an enterprise to determine the required level of detail in its own financial plan, it is worth listing the list of management problems that the financial plan will help solve:

The financial plan solves the problem of preparing and implementing at the enterprise a system for continuous assessment of the company's financial performance;
The financial plan allows you to set up the process of continuous preparation of forecasts and plans for the company's activities;
Determine the sources of income and the volume of financial resources planned for the enterprise;
Form plans for the needs of the enterprise in financing;
Plan standards within the enterprise;
Find reserves and internal opportunities to improve efficiency;
Manage the planned modernization and development of the company.

Thus, the system of interconnected financial plans becomes that part of the enterprise management system that reflects and makes it possible to manage all financial, economic, production and business processes, both within the enterprise and in the interaction of the company with the external economic environment.

Enterprise financial plan - sample

To create a quality financial plan, it is recommended to use the following sequence of actions:

1. Formulate the goals of drawing up a financial plan;

2. Specify the composition of indicators and the degree of detail;

3. Study examples and samples of financial plans;

4. Develop an example of a financial plan form and agree within the organization;

5. Based on the feedback from users of the enterprise financial plan template, develop a final individual template for the company's financial plan.

Financial plans are drawn up not only to plan the work of a single company as a whole, they can perform various tasks - be the basis of projects, calculations within individual departments, or reflect financial data for a single manufactured part.

Figure 3. An example of a spreadsheet financial plan for a small project.

findings

The market economy dictates new requirements for business to its own organization. High competition forces businesses to focus on predictable results, which in turn is impossible without planning. This external market environment encourages companies to engage in financial planning to ensure their own efficiency.

Competent calculations and plans can provide the enterprise not only with current operating benefits, but also help in managing its prospects for the production of works and services, cash flow, investment activities and in the commercial development of the enterprise. The current financial condition of the enterprise and the corresponding reserve for the future directly depend on financial planning. A well-designed financial plan of an enterprise is a guarantee of protection from business risks and an optimal tool for managing internal and external factors that affect the success of a business.

the financial section is responsible for providing summary monetary information. In general, all business plans can be written according to different methods and according to different requirements. Their format will largely depend on the goals of the project, its scope and main characteristics. The same differences may be present in the financial sections of such plans, however, as a rule, the process of writing this chapter can be divided into several main stages, namely:

Settlement standards;
General production expenses;
Cost estimate and calculation of the cost of goods or services;
Report on the main financial flows;
Report about incomes and material losses;
Estimated financial balance of the project;
Analysis of the main financial indicators;
Description of the method (methods) of financing.

Business plan financial plan structure

1. Calculation standards

In this paragraph, the following points should be defined and described:

Prices that will be indicated in the business plan (permanent, current, with or without taxes);
The taxation system, the amount of the tax, the timing of its payment;
The terms covered by the business plan (planning horizon). As a rule, this period is about three years: the first year is described in more detail, divided into monthly periods, while the following years are divided into quarters.
Indication of the current inflation rate, inflation data for the last few years. Accounting for this factor regarding prices for consumables, raw materials, etc. - everything that will need to be purchased for the implementation of the described project.

2. General production costs.

The data on salaries correlate with the information previously presented in the organizational and production plans.

Variable, situational costs depend on the characteristics of production, goods, services. Various factors can be taken into account here, for example, seasonality. Correct calculations of variable costs can only be made by analyzing the volume of output of goods or services and approximate levels of sales.

Fixed, recurring expenses depend on a single variable - time. These costs include business management, marketing, facility maintenance, equipment maintenance, etc.

3. Cost estimate and calculation of the cost of goods or services

The cost estimate (investment costs) is, in fact, a list of expenses that will need to be incurred in order to implement the project outlined in the business plan. This item should be described in as much detail as possible, as it allows you to determine the financial viability and efficiency of investments.

If a business project involves the production of certain products, the costs of its organization and implementation should be covered with the help of initial working capital, which are also part of the investment costs.

The sources of such funds can be investments and, for example, credit funds.

The cost of production is calculated based on information about costs, salaries, overheads, etc. It also needs to take into account total production volumes and sales levels for a specific period of time (for example, a month or a year).

4. Report on the main financial flows

This item includes a description of all cash flows. Undoubtedly, this report is one of the main parts of the financial plan, as it is intended to show that the project will be financially secure at any stage of its activity and that there will be no cash gaps during the project.

5. Profit and loss statement

In this paragraph, a financial assessment of the activities of the enterprise is carried out, its income, expenses, profits and losses are described.

6. Financial balance of the project

To write this section, it is necessary to make a balance forecast based on all previous calculations or existing reports (if the enterprise is already operating). This forecast is also divided into months, the first year, quarters of subsequent years and the third year of operation.

7. Analysis of financial indicators of the project

After you draw up a balance sheet, you can analyze the main financial indicators. Such an analysis is done for the entire period of implementation of the plan, after which the financial characteristics of the project are summed up: its sustainability, solvency, profitability, payback period, present value of the project.

9. Descriptions of financing methods

In this paragraph, it is necessary to describe on what funds the project will be implemented. There are several types of financing, namely equity, leasing and debt. The sponsor can be the state in the form of subsidies or loans or private investors, and this must be indicated in the financial section of the business plan.

In the same paragraph, you need to describe the process of borrowing and repaying borrowed money, indicating sources, amounts, interest rates and a debt repayment schedule.

It should be emphasized that the financial plan is the most important and complex part of the business plan. Any mistake made can result in a refusal of funding, which means that it is better to entrust its compilation to a competent person. However, if your project is simple and does not involve, for example, the production of large batches of goods and their further sale, you can compose it yourself.

Considers the issues of financial support for the activities of enterprises, firms, organizations and the most efficient use of available financial resources based on an assessment of current financial information and a forecast of the volume of sales of goods and services in the markets in subsequent periods.

The financial plan is developed in the form of the following forecast financial documents:

forecast of financial results;
projecting cash flow;
forecast balance of the enterprise.

As a rule, the forecast period covers 3-5 years. Consider the sequence of designs using the same example of an enterprise that has already worked in the field of food production and wants to release a new type of product in the forecast period. He is interested in how the results of activities will develop in the future, taking into account the new production program.

Forecast of financial results

The purpose of the forecast of financial results is to present the prospects for the activities of the enterprise in terms of profitability (Table 1). Investors will be especially interested in the level of profitability in the coming period, as they can see what share of the profits the enterprises will receive.

1st, 2nd year, etc. are the years of the forecast period, beginning with the year following the business plan development (base year).

The starting position for compiling this forecast is planning the volume of sales in physical and value terms. In this case, the calculations are carried out for all types of products, and then summarized in the result presented in Table. 1 (line 1).

Subtracting from net sales, we get the gross profit. Cost indicators have already been calculated in the "Production plan" section of the business plan in question.

Table 1. Forecast of financial results, thousand rubles

Operating costs include the costs of developing a new type of product, marketing research, administrative costs and costs of selling products.

The indicator "Balance sheet profit" (line 6) is obtained by subtracting operating costs and the amount of interest paid from gross profit.

Taxes from profits in our example are significant - 50% of book profit minus the amount of past losses carried forward (negative profit). Loss carry forwards are determined by adding last year's retained earnings (if negative) to current year's net income.

The difference between the balance sheet profit (line 6) and the corresponding amount of income tax paid (line 7) gives the net profit indicator (line 8).

This indicator, along with indicators of net sales and cost of goods sold, are fundamental for further analysis of the dynamics of possible changes in the financial situation over the five years.

As a rule, such calculations are of a multivariate nature depending on the expected sales volume, prices, production costs (optimistic forecast, pessimistic forecast, average forecast).

Cash flow design

This projection does not reflect income and expenses, but the actual receipt of funds and their transfer (Table 2). That is why the final figure of the cash flow projection reflects the balance of the company's cash flow. The forecast of financial results can be transformed into a cash flow projection through a number of adjustments.

In the projection of financial results, the estimated values of income from sales, net profit are shown. In contrast, cash flow reflects the actual receipt of sales revenue. To move from actual to calculated indicators, it is necessary to take into account the expected timing of receipt of sales payments.

If the forecast of financial results reflects the costs incurred in a given period, then the cash flow projection shows the actual payment of these costs. It should be taken into account that some costs may be covered immediately, while others - after a certain period of time. To carry out the harmonization of indicators, it is necessary to understand the nature of the credit policy of the enterprise.

It should be borne in mind that in the initial period of the existence of an enterprise, its position with funds will be much more important than profitability, since this factor most accurately characterizes its viability.

Table 2. Projection of cash flow, thousand rubles.

The cash flow projection reflects the flow of all money from all sources, including not only proceeds from the sale of products, but also proceeds from the sale of shares or funds borrowed from the sale of certain assets.

In our example, it is assumed that the minimum cash balance will be 7 thousand rubles. The funds are planned to come from sales of manufactured products (line 1) and proceeds from the sale of company shares in the first two years of the forecast period (225 thousand rubles and 125 thousand rubles, respectively). The level of proceeds from sales will depend on the nature of settlements with buyers of products.

When designing the expenditure of funds, the amounts of operating costs are planned, for payment of direct labor costs, the raw materials used (depending on the volume and range of products).

Line 5 "Capital investments" reflects the expenditure of funds to replenish fixed assets (purchase of equipment, etc.) in the amounts provided for in the design of the "Production plan" section.

In our example, the development of production in the forecast period will occur at the expense of the enterprise's own funds, their replenishment through additional issue of shares, as well as short-term loans. Long-term lending is not provided, so line 6 contains zero values for this indicator. Payment of interest on loans (line 7) is carried out only on short-term loans, taking into account the terms of the loan.

Having calculated the income and expenditure of funds by years, we obtain such an important indicator as net cash flow (line 8), as well as the balance of cash flow (line 9). Given the need to maintain reserve funds (the last line) and the volume of repayment of short-term loans already taken, it is possible to calculate the required volume of loans for the forecast periods.

When designing cash flow, keep the following in mind:

the uncertainty of most financial and other projections increases with the expansion of the time range: for the first 12-24 months, monthly and quarterly projections are quite acceptable;
when determining the amount of funds to start the production of new products, it is almost impossible to calculate the amount of working capital required without a monthly cash flow projection.

The calculation of the monthly cash flow can become the basis for developing a number of goals, thanks to which it becomes possible to manage the enterprise and correctly assess the results actually achieved by it.

Enterprise balance design

As you know, the balance sheet does not reflect the performance of the enterprise for any period of time, but is its instantaneous "snapshot", showing from a financial point of view its strengths and weaknesses at the moment. The balance sheet brings together the assets of the enterprise (what it has), its liabilities (how much and to whom it owes), as well as equity.

Balance projections are compiled, as a rule, at the end of each year from the forecast five-year period (Table 3). These balance sheets are compiled on the basis of the original balance sheet of the base year, taking into account the expected features of the enterprise's development in the forecast period (changes in financial results, operating characteristics, attraction of own and borrowed funds, etc.).

It is believed that this document is less important than projections of financial results and cash flow, but it is the predictive bank that specialists (lenders, investors) carefully study in order to assess what amounts will be invested in assets and at what expense of liabilities.

When preparing balance sheet designs, special attention should be paid to the following features:

even if the enterprise is just starting to work, some part of the assets must be formed at the expense of its own funds;
the share of equity capital is of great importance for creditors and investors, since significant financial obligations of this kind will mean the seriousness of intentions to develop entrepreneurship;
the level of liquidity of the balance sheet plays a significant role, since having sufficient liquidity, the company can afford a more maneuverable policy.

Table 3. Projection of balance sheet indicators by years, thousand rubles

When designing the balance sheet, it was taken into account that the “Cash” item includes short-term investments, and their level is maintained at the minimum balance value (7 thousand rubles) by attracting short-term loans. The main assets include capital investments aimed at purchasing equipment that is depreciated for more than five years.

When designing liabilities, the need to obtain short-term loans to finance the cash deficit and maintain a minimum cash balance is taken into account. Equity capital includes the existing initial investments (55 thousand rubles) of the co-founders of the enterprise, as well as the planned issue of shares, which in the first and second years of the forecast period can provide the necessary inflow of funds for the successful launch of this production.

Retained earnings include gains and losses from the first year. Previous costs are included in pre-production costs and are planned to be reimbursed within 10 years in equal installments.

After the design of the financial section of the business plan, they proceed to an express analysis of the financial activities of the enterprise in the forecast period.

Express analysis of predicted indicators

The financial plan is the most important section of business plans, which are drawn up not only to justify specific investment programs, but also to manage the current and strategic financial activities of the enterprise.

At the same time, a very important stage of financial planning is to carry out serious analytical work by calculating the most important relative indicators (financial ratios), the dynamic series of which allow you to determine the trends in the development of the financial situation at the enterprise when making specific decisions (in our case, when releasing new products).

Financial ratios are calculated on the basis of the data obtained during the design and comprehensively characterize the project under consideration. As a rule, at this stage of forecasting, the calculation of the most important indicators is carried out, giving an idea of the level of solvency, profitability of the enterprise in the period under review.

The purpose of this kind of express analysis is to present in the most concrete form the development trends of the enterprise in the conditions of the declared action program, making a conclusion about the expediency (inexpediency) of implementing this project. Financial ratios calculated based on the results of the projections are included in the financial summary table (Table 5) and can largely influence the opinions of potential creditors and investors.

Here are some indicators that are calculated to assess the predicted results of the enterprise. These include: liquidity indicators, characterizing the ability to repay short-term debt; indicators characterizing the management of funds, - the period of inventory turnover, receivables, the period of repayment of accounts payable (Table 4).

To assess the financial stability of an enterprise or the degree of dependence on debt obligations, the ratio of borrowed and own funds is calculated. It allows you to judge the stability of the company and its ability to raise additional funds.

Table 4. Projection of financial ratios

Profitability indicators include the rate of return (the ratio of net profit to net sales), return on equity (the ratio of net profit to equity) and return on assets (the ratio of net profit to the total assets of the enterprise).

Financial ratios characterizing the profitability of the enterprise, the expected level of solvency, along with other important indicators of the enterprise's activity, are included in the financial part of the business plan summary (section I).

For our example, the indicators of the financial summary are given in Table. 5. Forecast indicators of net sales, net profit for the coming period show a positive trend in the development of the enterprise (an increase in sales by the fifth year by more than four times, net profit - from negative values in the first year of the period (-190 thousand rubles) to a sufficiently high value in the last year (+317 thousand rubles.) Reinforcing the conclusions about the good prospects for the development of the enterprise in the implementation of the goal (production of a new type of product) are the values of the calculated financial ratios (the rate of return increases from 0.0 to 11.2%; profitability equity — from 0.0 to 53.6%; return on assets — from 0.0 to 36.2%).

From the calculations given in the financial section of the business plan, it can be seen that the current liquidity level of the balance sheet is unstable, however, starting from the fourth year of the forecast period, its values exceed the normative level.

Table 5. Financial Summary

One of the most important indicators is the ratio of borrowed and own funds (see Table 5). In the second and third years, it is planned to increase this indicator, and in the third year to 156.1%, which reflects the company's tactics for forced short-term borrowing to cover the increasing volumes of working capital. However, in the fourth and fifth years, this indicator noticeably decreases.

The above calculations allow us to assert that the values of financial ratios in the fourth and fifth years indicate good prospects for the development of the enterprise. In the first two years of its operation, financial difficulties will be quite tangible, although they will be overcome by a properly defined borrowing policy while maintaining a sufficient level of liquidity.

Sometimes a financial plan is concluded with a break-even analysis to show what the sales volume must be in order for the enterprise to break even. Such an analysis is of some importance for potential creditors of the enterprise.

This section of the business plan summarizes all the previous sections of the business plan and presents them in the form of financial formulations and cost indicators.

The section combines three areas:

Financial and economic results of the enterprise:

Financial statements of the enterprise;

Analysis of the financial and economic state of the enterprise.

2. Planning of the main financial indicators:

Preparation of planning documents;

Forecast of the balance of assets and liabilities of the enterprise;

Forecast of profits and losses;

Cash flow forecast;

Financial evaluation of the project;

Forecast of the margin of financial strength.

3. Financial strategy

Need for investments and sources of their financing;

Evaluation of the effectiveness of the project as a whole;

Evaluation of the effectiveness of participation in the project;

Project sensitivity analysis;

Portfolio investments.

Financial and economic results of the enterprise. Financial documents of the last reporting period may be included in the "Financial plan" section or in the "Appendix to the business plan". It is desirable to bring financial reporting forms to the requirements of international standards.

In the paragraph “Financial statements of the enterprise” or in the “Appendix to the business plan”, financial documents of the last reporting period can be presented: profit and loss statement, cash flow statement, balance sheet of assets and liabilities of the enterprise.

At present, work is being actively carried out in Russia to converge the forms of accounting, statistical and banking reporting used in international practice, so it is advisable to use the forms recommended by the International Committee on Accounting Standards in a business plan. In this regard, the accounting data should be brought to a form that makes it possible to use them in the process of financial analysis based on methods that comply with international standards.

According to international standards, in countries whose currencies are subject to significant inflation, it is necessary to recalculate the main reporting data taking into account price changes. The financial statements in this case should be restated on the basis of constant purchasing power at the balance sheet date. This applies to the corresponding figures for the previous period.

In world practice, inflation-correcting revaluation of the analyzed objects is carried out either by fluctuations in exchange rates, or by fluctuations in price levels.

Revaluation of assets denominated in national currency at the rate of a more stable currency is a very simple way (this is the main advantage). However, this method gives inaccurate results due to the fact that the exchange rate ratios of the ruble and the dollar do not coincide with their real purchasing power. Because of this, the revaluation of the second method is more accurate, which can be either the method of taking into account changes in the general level, or the method of recalculating balance sheet items in current prices.

The method of accounting for changes in the general level is that various items of financial objects are calculated in monetary units of financial purchasing power (without taking into account the structure of assets, all property is valued).

Based on the results of the adjustment, a profit indicator is displayed, which is the maximum amount of resources that can be directed by the enterprise for consumption over the next period without prejudice to the reproduction process.

The universal formula for converting balance sheet items into monetary units of the same purchasing power:

where РВ is the real value of this article; HB - nominal article; – inflation index at the moment or for the period of analysis; - inflation index in the base period or on the initial date of tracking the value of the item in the balance sheet.

The method of recalculating items is advisable to apply when prices for different groups of inventory items grow differently. This method allows you to reflect the varying degree of changes in the value of inventories, fixed assets, depreciation that occurred as a result of inflation. The essence of the method is the revaluation of all items based on their current value. As the current value, the cost of reproduction, the price of a possible sale (liquidation) or economic value is used.

Liquidation expresses the potential net current selling price of assets, less the costs of their completion and sale.

Only so-called “non-monetary” items should be subject to inflationary adjustment: fixed assets (including intangible assets), inventories, work in progress, finished goods, IBE, liabilities that must be repaid by the supply of certain goods and (or) the provision of services, and etc. On the contrary, “monetary” items (cash, receivables and payables, credits, loans, deposits, financial investments, etc.), regardless of changes in the general price level, are not subject to inflationary adjustment. This is due to the fact that at each given moment they are already expressed in monetary units of current purchasing power. “Cash” items are included in the revalued financial statements at par or at cost, and “non-cash” items are included in the conditional valuation obtained as a result of the recalculation of initial costs.

The balance of assets and liabilities is achieved by regulating the item "Retained earnings".

When assessing the financial and economic condition of an enterprise in a business plan, it is recommended to analyze the main technical and economic indicators of the enterprise and its financial condition.

The analysis is carried out on the basis of the financial statements of the enterprise using a combination of technical, economic and financial indicators for the last three years. In the course of the analysis, the change in the absolute values of the most important indicators requires an explanation or justification. In addition, indicators and ratios are used for analysis, the calculation of which is based on determining the ratios between individual reporting items - financial indicators.

When analyzing the financial and economic condition of an enterprise, first of all, it is necessary to establish whether the following rule characterizing the economic activity of the enterprise is fulfilled:

Tpb > Tor > So > 100% , (5.2)

where Tpb - the rate of change in balance sheet profit,%; Tor - the rate of change in the volume of sales,%; So - the rate of change of the advanced capital, %.

The economic meaning of this rule is that the size of the property must increase (i.e., the enterprise must develop), while the growth rate of sales volume must exceed the growth rate of property due to the fact that this means a more efficient use of the resources (property) of the enterprise , and the growth rate of balance sheet profit should outstrip the growth rate of sales volumes, since this indicates, as a rule, a relative decrease in production and distribution costs.

Giving a general assessment of the activity of the enterprise, it is possible to determine the form of economic growth, Iek.r, by comparing extensive and intensive factors:

Iek.r \u003d (Ipt? Ifo) / (Ich? Iof) , (5.3)

where Ipt - labor productivity index; Ifo - index of return on assets; Ih – abundance index; Iof is the index of fixed assets.

If Iek.r > 1, then the enterprise develops mainly due to intensive factors. When Iek.r In the course of the analysis, the type of financial stability of the enterprise should be determined. For an enterprise that has an unstable financial position, the probability of its potential bankruptcy should be assessed.

It should be noted that in the course of analytical work, very contradictory results can be obtained in various areas of analysis. For example, an improvement in profitability indicators can be observed with a decrease in the level of liquidity and financial stability of the enterprise. In this regard, in the business plan, it is advisable to complete the analysis of the financial condition of the enterprise with a comprehensive comparative assessment of the financial condition, profitability and business activity of the enterprise, based on the theory and methodology of financial analysis of enterprises in market conditions.

The final comprehensive assessment takes into account all the most important parameters (indicators) of the financial, economic and production activities of the enterprise, i.e. economic activity in general. As a rule, a comprehensive assessment of the financial and economic condition of an enterprise is based on a certain set of financial indicators selected depending on the goals of the analysis.

Planning of the main financial indicators. The starting point for financial planning is the sales forecast (section "Sales Market Analysis") and the cost forecast (section "Production Plan").

This subsection begins with the preparation of planning documents: the forecast of the balance of the enterprise, the forecast of profits and losses, the forecast of cash flows.

In a business plan, it is advisable to present planning documents in a form similar to reporting ones, and it is desirable that the structure of these documents comply with the requirements of international standards. Detailed forms for filling out the relevant documents are presented in Appendix. 3 - 5.

It should be noted that the degree of detail in the presentation of information in the forecast forms of financial statements is determined by the goals of the projected business. As a rule, in the business plan, the forms of financial statements according to the forecast are given in an enlarged form and are detailed as necessary, taking into account the specific conditions of the enterprise.

The forecast of profits and losses, as well as cash flows, are presented in the business plan, as a rule, for the first planned year on a monthly basis (or quarterly), for the second - quarterly (or semi-annually), for the third and further - as a whole for the year. The forecast balance of assets and liabilities of the enterprise is compiled at the end of each year of the planning period.

In the business plan, it is mandatory to submit planning documents in forecast prices, i.e. prices expressed in monetary units corresponding to the purchasing power of each period of the project. The forecast prices include the forecast inflation rate.

The forecast of profits and losses reflects the operating activities of the company in the target period.

The purpose of this forecast is to present in a generalized form the results of the enterprise in terms of profitability. The forecast of profits and losses shows how the profit will be formed and changed, and, in essence, is a forecast of financial results. The business plan should present all types of taxation (Table 14).

In the profit and loss forecast, all values are given without VAT, payments for sales and direct costs are shown at the time of delivery of the products.

The forecast balance characterizes the financial position of the enterprise at the end of the calculated period of time and reflects the resources of the enterprise in a single monetary value in terms of their composition and directions of use, on the one hand (assets), and according to the sources of their financing, on the other (passive).

Table 14

Tax calculation

Name of indicator	The value of the indicator by periods
	200_				200_		200_
	1 sq.	2 sq.	3 sq.	4 sq.	1 p / g.	2 p/g.	200_
Indirect taxes
Including:
Taxes to be included in the cost, total
Including:
Taxes attributable to income statement
Including:
income tax

The cash flow forecast contains information that supplements the data of the forecast balance sheet and profit and loss forecast in terms of determining the cash inflow necessary to carry out the planned volume of financial and business operations. All receipts and payments are recorded in the time periods corresponding to the actual dates of these payments, taking into account the delay in payment for sold products (services), the delay in payments for the supply of materials and components, the conditions for selling products (on credit, with advance payments), and as well as the conditions for financing inventories.

The cash flow forecast does not include depreciation, although depreciation charges are classified as accounting costs; but they do not represent a monetary obligation. In fact, the accrued depreciation amount remains on the company's account, replenishing the balance of liquid funds. All values in the forecast are reflected including VAT, payments for sales and direct costs are displayed at the time of actual payments.

According to the three most important areas of the enterprise - operating, or production, investment and financial - the cash flow forecast consists of three sections.

1. Cash flow from current (production) activities. The main source of cash from the main activities of the enterprise are cash received from buyers and customers.

2. Cash flow from investment activity. In this area, cash flows are concentrated from the acquisition and sale of fixed assets, intangible assets, securities and other long-term financial investments, the receipt and payment of interest on loans, from the resale of own shares, etc.

The cost of acquiring assets in future operating periods should be accounted for by inflation on fixed assets.

Considering that in a normal economic environment, enterprises usually tend to expand and modernize production capacities, investment activity most often leads to an outflow of funds.

3. Cash flow from financial activities. As income, the contributions of the owners of the enterprise, equity capital, long-term and short-term loans, interest on deposits, positive exchange differences are taken into account here. As payments - repayment of loans, dividends, etc. Financial activities at the enterprise are carried out in order to increase its cash and serve to provide financial support for production and economic activities.

The amount of Cash Flow (Cash Balance) of each section of the Cash Flow Forecast will be the balance of liquid funds in the corresponding period, while the Cash Balance at the end of the settlement period will be equal to the amount of liquid funds of the current period of time.

The balance of funds in the account (cash balance) is used by the enterprise for payments, to ensure the production activities of subsequent periods, investments, repayment of loans, tax payments and personal consumption.

It should be noted that the cash balance at the end of the period should not be negative in any period of the project, because a negative value indicates a project budget deficit or, in other words, insufficient funds in the accounts and cash of the enterprise.

Therefore, the main task of the cash flow forecast is to check the synchronism of cash receipts and expenditures, and therefore, to check the future liquidity of the enterprise.

The cash flow forecast is the main document designed to determine the need for capital, develop an enterprise financing strategy, and evaluate the effectiveness of its use.

If the enterprise makes settlements not only in rubles, but also in foreign currency, financial and economic indicators should be calculated separately in rubles and foreign currency. The estimates are also given in rubles, while the forecast of exchange rates should be taken into account.

Thus, the business plan presents three forecasts of cash flows: a forecast for financial transactions in foreign currency, in rubles, and a summary forecast of all financial transactions in rubles.

Financial evaluation of the project. Assessment of the financial viability of the project involves the analysis of the financial enterprise during the planning period. The analysis is carried out on the basis of the forecast data of the financial statements of the enterprise.

In conditions of inflation, financial statements should be brought to a comparable form. In this case, it is most convenient to recalculate planning documents into basic prices. Financial documents formed in this way can be placed in the "Appendix to the business plan".

The financial evaluation of the project includes the calculation and analysis of the main indicators of the financial and economic state of the enterprise. The set of indicators must correspond to the list of indicators selected in the "Analysis of the financial and economic condition of the enterprise" subsection.

When predicting the financial and economic state of the enterprise under the project, they give an assessment of the form of economic growth, the type of financial stability of the enterprise, the likelihood of potential bankruptcy. At the end, a comprehensive assessment of the financial and economic state of the enterprise is determined.

The results of the financial assessment may necessitate the development of a new version of the financial plan when the initial data changes.

Forecast of the margin of financial strength. In the business plan, the critical sales volume (break-even point or profitability threshold) and the financial strength of the enterprise are determined graphically or analytically.

The critical sales volume (Vpr) can be calculated using the following formula.

That is a business plan. Now is the perfect time to tackle finance as part of your business plan.

It's time to deal with money.

Finance is the most important part of a business plan.

Financial section of the business plan is in last place simply because in this section we will use almost everything that we planned and analyzed in the previous sections. The financial part of the business plan should show us if our business idea is financially viable or not, and if it's worth it. We have planned and considered many things, including how to produce, how much money to save for salaries, etc. But now we have to check whether these plans are sustainable or not.

What should be included in the financial section of a business plan?

Brief summary of the financial plan.
Description of sources of initial financing.
Key financial assumptions.
Key financial indicators.
ROI chart.
Displaying the profit / loss forecast.
Display cash flow forecast.
Balance forecast.

1. Brief summary of the financial plan

As always, the summary is written at the end (after the other parts of the financial plan) and covers the most important features of the financial plan. Keep in mind that if you plan to use the business plan to raise funds from an investor, then this section may be the most readable part of the business plan, as it briefly describes the main financial indicators. And this is the main thing that interests any investor.

2. Funding sources

Here we describe all the sources of financing in the beginning of the business. In this part of the table, you just need to indicate what finances you will invest, which ones you will borrow from relatives and friends, how many loans you need from banks, etc. Provide a brief explanation.

3. Key financial assumptions

In this subsection, you should come up with some forecasts based on the analysis of the financial sector in the country and internal analysis. You will need to specify the following assumptions:

Changes in interest rates.
How many days will you defer payment?
On what schedule will you make payments?
How much to tax?
What will be the costs?
What % of sales will be on credit?

All these assumptions will be used for further analysis. So make sure these assumptions are as accurate as possible. Look for information on the Internet, the State Statistical Office, the Central Register, banks, etc.

4. Key financial indicators

This is a simple chart, already described in the business plan summary, and which gives us a picture of what the sales volume, gross margin movement and net profit of the enterprise will be. In the sales strategy, we have already estimated the sales and costs associated directly with this sale, i.e. direct costs. This data should be used here. In the spreadsheet, also collect overhead costs such as payroll, rent, operating costs… The sum of these direct and overhead costs is the total cost per year. Gross margin will be the difference between revenue and total cost of sales (direct costs), and net income will be calculated by subtracting all expenses and taxes from total sales revenue.

5. ROI chart

In simple terms, profitability is the amount of money that is needed to cover all the expenses of the enterprise. Profitability analysis will tell us how many units of products or services we have to sell to cover costs (so as not to operate at a loss). The purpose of this analysis is to find the ROI point, which will indicate at what level the business will be profitable and at what unprofitable. You need to know the direct and variable costs of your business.

For example, if total expenses are $20,000.00 and the retail margin percentage is 16.67%, the breakeven point would be $20,000.00 / $0.1667, or $120,000.00. This means that you need to have an income of 120,000.00 rubles per month to cover all expenses and not incur losses. In a business plan, it is recommended to present this graphically, as shown below.

Financial plan - Sales and cost schedule

6. Profit/Loss Forecast

In this subsection, a brief description and tabular presentation of the profit/loss should be given, covering all costs. That is, you just need to make a table with forecasts of sales (income) and costs (expenses) to calculate profit / loss.

7. Cash flow analysis

In this subsection of the financial plan, you should display a cash flow chart that will show you (and the investor too) how cash will move in your business. Give a brief comment on the results of the analysis.

Cash flow tells us how much money we are currently able to spend on a business. What costs can be: raw materials for production, purchases of products for retailers, salaries for employees, repayment of loans, financing ... If there is no cash, you will not be able to purchase raw materials for production or products for sale. We won't pay salaries to employees, and we won't have the money to pay our loan installments, we can't finance business growth…etc.

Again, notice that there are businesses that make a profit. But this profit is paper, and they go bankrupt because they do not have enough money. This result is due to some of the following points:

Entrepreneur's uncontrollable expenses. Spend more than you have cash flow. Here we are talking about cash, not income, because there may be income, but there is no cash.
The company operates without cash flow analysis.

For example, we may have a business income of 100,000.00 rubles, 50,000.00 of which you receive over the next 3 months. So we now have 50,000.00 rubles in cash. The item is being sold at a vendor for 80,000.00 and we are unable to re-sell. At the same time, we will not be able to meet the demand of consumers, and sales will begin to decline.

Cash flow is formally the movement of cash in or out of the business cycle (i.e. cash inflow and outflow), which effectively determines the solvency of a business.

Cash flow analysis is the study of the cycle of cash flow and cash flow in your business.

To summarize, let's look at everything that can affect cash flows:

Initial cash.
Sales (for each month or an estimate of sales in the first month and the percentage of sales growth from month to month).
Cost of goods sold; % of sales can serve as a cash flow analysis.
Selling on credit - % of consumers who buy on credit.
The number of days before receiving deferred payments.
Profitability -% of sales.
The initial inventory balance is the amount of supply you buy before you start selling.
Months for which there is an item in stock - the number of months.
Primary debts are the amount of money you owe at the beginning of the analysis.
Primary expectations - the amount of money that we expect to receive. For beginners, it is zero.
Days to pay bills - the number of days after which you must pay your bills.

Before you begin your cash flow analysis, you must complete the Sales Forecast and Estimate section. Because without it, you do not have the data from point 2. What is also important is what percentage of total sales is on credit, as well as the period for which the money will be transferred to cash. On the other hand, for a qualitative analysis of cash flows, it is also necessary to know the timing of payment of obligations.

The illustration below shows the cash flow analysis for the first year.

Cash flow in the financial section of the business plan

It can be seen from the figure:

Total cash inflow. This is all the cash that comes into the business, both from the sale and from other sources.
Total amount of cash outflow. This is the money for the current month to buy, pay fees, wages…
Cash balance at the end of the month. This refers to how much money you have at the end of the month in cash and, accordingly, what is the input element in the next month.
Monthly cash flow. The red color shows the cash flow for the month and indicates whether we spent more money in the current month than we received.
Profit at the end of the month.

It is interesting to note two things:

In April, July, October and November we have a negative cash flow, but a profit is realized.

In January, where we have positive cash flow, we take losses.

This tells us that profits and cash flows are not directly dependent on each other. Therefore, we have positive cash flow when there are losses and negative cash flow when there are profits.

8. Balance forecasts

In this section, we briefly list the main indicators of the balance sheet. The balance sheet is a check on the financial position of a business, and most financial lending institutions will give this section the most attention. The balance sheet contains the assets of the enterprise, as well as liabilities and personal capital.

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