PURPOSE OF MODEL
 
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing manufacturing business generating revenue through the production and sale of products.
 
The model allows the user to model the production and sale of up to 10 products (can be extended). Production costs include direct materials (up to 20 categories), direct labour costs (up to 10 categories) and direct expenses with functionality to model inventories for both direct materials and finished goods.
 
The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.
 
 
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) 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
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item
List of key ratios including Average revenue growth, Average profit margins, Average return on assets and equity and Average Debt to Equity ratio.
Bar charts summarising income statement and Balance Sheet projections
Gross Profit margin by product in table and bar-chart format
Discounted cash flow valuation using the projected cash flow output.
 
 
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 for products, direct materials, direct labour, direct expenses, other variable costs, admin staff costs, admin costs and fixed assets;
Sales tax applicability for products, direct materials, variable costs, other expenses and fixed assets.
 
Actuals Inputs:
Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);
 
Projection Inputs:
Revenue inputs including sales volume, sales prices, average credit terms offered and safety stock percentage for finished products inventory calculation;
Direct labour inputs include labour hours per product, current number of FTEs, annual cost per FTE, working days per year and production hours per day.
Direct material inputs include direct material units per product, cost per unit, safety stock percentage for direct material inventory calculation and average credit terms received;
Direct expense inputs include amount per year or month and allocation percentages across products;
Variable cost inputs including percentage of revenue applicable to and cost percentage of revenue;
Other costs inputs including admin staff costs, marketing costs and admin 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 9 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’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Charts’ and ‘o_DCF’.
 
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 up to 10 separate products with their own unique combinations of direct materials, direct labour usage and direct expense allocation;
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 reduce risk of errors;
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Products – 10 categories;
Direct materials – 20 categories;
Direct labour costs – 10 categories;
Direct expenses – 10 categories;
Other variable costs – 5 categories
Admin Staff costs – 8 categories;
Marketing costs – 5 categories;
Admin 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 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