It is designed for a wide variety of users, from those who have little or no accounting or Excel experience to those who may be well versed in finance, accounting and the use of Microsoft Excel.
It is a forecast and thus, it is highly recommended to go with simple math. The second way this workbook is documented is using Excel comments in a given cell. If you are starting a new business and do not have these historical financial statements, you start by projecting a cash-flow statement broken down into 12 months.
To auto assemble all of the above-given calculations in the financial section of your business plan, you'd need a business planning software to make sure that you get this right in the first attempt itself.
These important documents are put together to help your business plan for the future. Putting a good financial business plan together gives you a roadmap of the money trends that you can expect. If you are using your business plan to get a loan, it is highly recommended to include your business' financial history as part of the financial section.
Develop a cash-flow statement. Current earnings are earnings for the fiscal year up to the balance sheet date income - the cost of sales and expenses. This part of your business plan might look like accounting but a financial business plan is designed to look forward.
While established businesses are required to produce Income Statement annually, startups and small businesses should provide monthly report while writing a business plan. They are going to want to see numbers that say your business will grow--and quickly--and that there is an exit strategy for them on the horizon, during which they can make a profit.
You should have a figure for each individual year as well as a figure for the full three-year period.