Budgeting and Forecasting Financial Model
Creating a detailed financial modeling template for budgeting and forecasting involves setting up a structured workbook that helps in planning, analyzing, and projecting financial performance.
A comprehensive budgeting and forecasting template provides a robust framework for financial planning and analysis. It aids management in making informed decisions by visualizing different financial scenarios and understanding the potential impacts on the company’s financial health.
Below is a detailed description of the template.
The input sheets and the data to be inserted are listed below.
Assumptions Sheet
- Name of business;
- Business Name
- Business Sector
- Address/City
- Selection of Country (automatically fill of Region and Subregion)
- Currency Selection
- Reporting Starting Year
- Operations Starting Date
- Loan Amount
- Annual Interest Rate
- Loan Years period
- Interest Only Payment period
- Name of Products
- Tax rate
Revenue, COGS, Payroll, OpEx and for the first-year
- Volume projections
- Cost of Goods Sold (COGS) prices per item
- Margin per item
- Operating expenses (up to 10 categories)
- Depreciation items per category and rates
The calculations sheet is updated dynamically according to assumptions and scenarios. There are three different scenarios: Best Case, Base Case, Worst Case.
- Formula-driven revenue, quantities and COGS calculations based on volume and pricing assumptions.
- Quantities broken down by month/quarter/year.
- Revenue Calculation broken down by month/quarter/year.
The output sheets for the forecasted 5-years are listed below.
- Year Budget by selecting month and year (dynamically change to Actual – Forecast)
- Monthly Budget
- Monthly Actual (data should be inserted according to actual figures)
- Variance analysis for Year to Date (YTD), Current Month and Quarter
- Graphs of Variance Analysis
-
Income Statement: Gross profit, EBIT (Earnings Before Interest and Taxes), and net profit calculations. Year-over-year growth analysis.
-
Cash Flow Statement: Operating Activities, Changes in working capital, Investing Activities, Cash flows from capital expenditures and investments, Financing Activities: Cash flows from borrowing, equity raises, and dividend payments. Net Cash Flow: Summarized to show net changes in cash position.
- Balance Sheet
The input sheets and the data to be inserted are listed below.
-
Liquidity Ratios (Current ratio, quick ratio)
-
Profitability Ratios: Gross margin, operating margin, net profit margin.
-
Efficiency Ratios: Inventory turnover, receivables turnover.
-
Leverage Ratios: Debt-to-equity ratio, interest coverage ratio
- 5-Year Direct Cashflow according to assumptions and drivers
-
Breakeven analysis for 5 years.
-
Dashboard with graphs.
About us
At N Consulting, we specialize in delivering top-tier financial modeling services tailored to meet the unique needs of businesses across various industries.
Our expert team creates detailed financial models that support strategic decision-making, optimize financial performance, and drive business growth.
We navigate our customers in deep water of entrepreneurship by providing forecasting, budgeting, valuation, to empower your financial planning and ensure your company’s success.
Help & Support
If you encounter any issues with this model, please do not hesitate to reach out to our support team for prompt and comprehensive assistance.
