Publication 541, Partners | Publication 1, Your Right | Alerts | Publication 538, Accounti | Publication 225, Farmer's | Publication 535, Business | Publication 225, Farmer's | ASBDC.Net Business Servic | Publication 504, Divorced | Publication 334, Tax Guid | Publication 541, Partners | ASBDC.Net Business Librar | Publication 519, U.S. Tax | Publication 946, How To D | Publication 514, Foreign | Publication 463, Travel, | Publication 519, U.S. Tax | Publication 954, Tax Ince | ASBDC.Net Business Librar | Publication 225, Farmer's | Van Insurance Company - Webkatalog - Hp Compaq Presario 1000 - Print Real Estate Postcards - Cash Advance AffiliateUse the worksheets which follow to project the expected sales and expenses of your business in its first year of operation. Detailed worksheets are provided for estimating sales, cost of goods sold, labor-related expenses and operating expenses. Transfer these amounts to the Profit or Loss Statement, and then complete it. The expense categories shown are those typical for most businesses; add any other expenses that you know will apply to your business that are not shown.
Instructions for Completing Projected Sales Revenue Worksheet
- Month: Write in the months for your projected 12-month calendar.
- Sales: Enter your projected sales by month for each product or service.
- Gross Sales: Sum each month's total sales.
- Returns: List your projected amount of product returns by month.
- Net Sales: Subtract the projected monthly returns from the projected gross sales to yield Net Sales.
Projected Sales Revenue Worksheet
+ Sales: Product 1 + Sales: Product 2 + Sales: Product 3 + Other Sales = Gross Sales - Returns = Net Sales Sales Revenue Assumptions:
- The sources of information for my sales projection are: ____________________________________.
- If the total market demand for my product/service = 100%, my projected sales volume represents ____% of this total market.
- The following factors might lower my sales projections: ____________________________________.
Instructions for Completing Projected Cost of Goods Sold Worksheet:
- Month: Write in the months for your projected 12-month calendar.
- Beginning Merchandise Inventory: Enter the beginning balance of inventory each month.
- Net Purchases: Record each month's projected purchases of inventory.
- Freight In: Enter freight charges for inventory purchases.
- Total Merchandise Available for Sale: Sum beginning inventory, purchases and freight costs to arrive at value of total merchandise available for sale.
- Ending Merchandise Inventory: Enter your projected amount of inventory on hand at the end of each month. (Ending inventory becomes the next month's beginning inventory.)
- Costs of Goods Sold: Subtract ending inventory from total merchandise available to get Cost of Goods Sold.
NOTE: This worksheet does not include direct labor costs as part of total cost of goods sold. Labor costs would properly be part of cost of goods sold for manufacturers and some other types of businesses.
Projected Cost of Goods Sold Worksheet
+ Beginning Merchandise Inventory + Net Purchases + Freight In = Total Merchandis Available for Sale - Ending Inventory = Cost of Goods Sold Cost of Goods Sold Assumptions:
1. The sources of information for my cost-of-goods-sold projection are: _________________________.
2. The following factors might increase my cost-of-goods-sold projections: _______________________.
Instructions for Completing Projected Labor Expense Worksheet:
NOTE: FICA = social security and Medicare tax; FUTA = federal unemployment tax, based on first $7,000 of 1995 wages per employee; SUTA = state unemployment tax, based on first $9,000 per employee in 1995.
Projected Labor Expense Worksheet
+ Owner's Salary + Employee 1 + Employee 2 + Employee 3 = Total Wages + FICA + FUTA + SUTA + Worker's Compensation Insurance + Employee Benefits = Total Labor-Related Expenses Labor Expense Assumptions:
The sources of my cost estimates are:
- Payroll Taxes:_____________________________________________
- Employee Benefits:_________________________________________
- Worker's Compensation Insurance:_____________________________
- Hourly Wage Rate: _________________________________________
Instructions for Completing Projected Operating Expense Worksheet:
- Wage & Labor-Related Expenses: Enter total wages and labor-related expenses, by month, from Projected Labor Expense Worksheet.
- Commissions: Enter total monthly commissions paid to sales staff.
- Repairs/Maintenance: Projected facility upkeep or repairs per month.
- Insurance: Projected business insurance (e.g., liability, building & property, business interruption, etc.).
- Taxes/Licenses: Projected property taxes, privilege license fees, etc.
- Bad Debts: Projected bad debt expense on customer sales.
- Bank Charges: Estimated bank fees on business checking accounts, bank credit card charges, etc.
- Depreciation: Estimated monthly depreciation expense on fixed assets (e.g., building, equipment) owned by business.
- Miscellaneous: Estimated amount for unplanned or unknown costs by month
Note: Enter projected monthly costs for each category of operating expenses listed; additional explanation is offered above for some cost items.
Projected Operating Expense Worksheet
+ Total Wages + Labor-Related Expenses + Commissions + Rent + Utilities/Phone + Freight Out/Mail + Repairs/Maintenance + Advertising + Supplies + Insurance + Auto/Truck + Legal/Accounting + Taxes/Licenses + Bad Debts + Bank Charges + Depreciation + Travel/Entertainment + Miscellaneous = Total Operating Expense Operating Expense Assumptions:
The sources of my cost estimates in the following areas are:
- Rent_______________________________________________________________
- Utilities/Telephone_____________________________________________________
- Advertising___________________________________________________________
- Insurance ___________________________________________________________
- Legal/Accounting______________________________________________________
- Depreciation__________________________________________________________
Instructions on Completing Projected Profit or Loss Worksheet:
- Net Sales: Enter projected net sales, from Projected Sales Revenue Worksheet.
- COGS: Enter projected cost of goods sold, from the Projected Cost of Goods Sold Worksheet.
- Gross Profit: Subtract cost of goods sold from net sales to yield Gross Profit.
- Total Operating Expenses: Enter total operating expenses from the Projected Operating Expense Worksheet.
- Operating Profit: Subtract total operating expenses from Gross Profit to yield Operating Profit.
- Other Income: Enter projected non-operating income by month (e.g., vending machine income).
- Other Expense: Enter projected monthly non-operating expenses (e.g., vending machine expense).
- Interest Expense: Enter monthly interest expense on loans obtained by business.
- Profit Before Taxes: To Operating Profit, add Other Income and subtract Other Expense and Interest Expense.
- Income Taxes: Multiply your profit before taxes by your income tax rate.
- Net Profit: Subtract projected income tax expense from Profit Before Taxes to yield Net Profit.
Projected Profit or Loss Worksheet
+ Net Sales - COGS = Gross Profit - Total Operating Expenses = Operating Profit + Other Income - Other Expense - Interest Expense = Profit Before Taxes - Income Taxes = Net Profit Profit or Loss Worksheet Assumptions:
1. My source for income tax estimates is: _________________________________________.
Author: Arkansas Small Business Development Center and Arkansas Enterprise Group
Source: Arkansas Small Business Development Center Business Blueprints
Description: Identify expected startup costs and a twelve-month operating budget This article is reprinted from the Small Business Forum, the journal of the Association of Small Business Development Centers, which is published by the University of Wisconsin-Extension Small Business Development Center. For information about subscriptions, reprints or submissions, please write to us at 432 North Lake Street, Room 425, Madison, WI, 53706 or call us at (608) 263-7843