Accounting Software Excel Financial Model Template
Originally published: 28/06/2021 08:06
Publication number: ELQ-28439-1
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Accounting Software Excel Financial Model Template

Accounting Software Excel Financial Model Template is a great tool for Small and Medium-sized Accounting startups.

Description
Accounting Software Excel Financial Model Template:

In the last 5 years, the Accounting Software Industry is on verge of making profits. Many small accounting software startups have been successful. Our Accounting Software Excel Financial Model is perfectly made for that startup that recently has been started operation.

Similar Business Model:

XERO, WAVE, Quickbooks

Introduction to Our Financial Model Template:

Accounting Software Excel Financial Model Template presents the business case of a brand new start-up consultancy business with an upfront investment in a website, SEO, logo, copywriting. The model contains the three financial statements including the cash flows and calculates the relevant metrics (Sensitivity Analysis, Break-even Analysis, Diagnostic Tools, Project evaluation, and Charts). The financing options for the project include a standard long-term loan as well as an investment made by the investors and of course marketing sheet ( include automated inbound and outbound marketing costs sheet which also contains how many customers will achieve as a result).

Key Features of Accounting Software Excel Financial Model:

1: Input Sheet

This financial model template contains inputs that, when changed, impact the calculations and, therefore, the changes are applied to all relevant sheets. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes.

2: Startup Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash injected by the company so far, and based on the number of months the amount of investment required is calculated.

A Startup Summary helps you take a realistic view of your idea and double-check whether it’s the business has enough funds to support operations.

3: Monthly & Yearly Income Statement

The Accounting Software Excel Financial Model provides the monthly as well as yearly income statement structure. The framework for creating a full corporate forecasting model tailored to your particular business.

An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement to see how it impacts all other parts of the statements accurately and consistently.

The monthly Income Statement sheet of the Financial Model is perfect for those who require regular reporting and details. Additionally, Income Statement contains all revenue streamlines with gross earnings, net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands the accounting Services business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits or otherwise.

Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses. The Yearly Income Statement also contains several graphs, assumptions, ratios, net profit, cost of services, and profit after tax.

4: Balance Sheet

This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. This also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore, this specific, financial model gives you the perfect space to analyze your key financial balance accounts.

5: Cash Flow Statement

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements act as a bridge between the income statement and balance sheet by how money has moved in and out of the business.

Three main sections of the Cash flow Statement:

1: Operating Activities: We have included all cash in and out related to the operations of the business
2: Investing Activities: Any cash from the disposal of an asset and investments included in this section and linked to the inputs and fixed asset tab.
3: Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information thee. The tab is linked to Financing Activities of Cashflow Statement

The Cashflow Statement in our Model contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow, beginning and end cash balances. This is a perfect template for your company’s cash flow management.

6: Sensitivity Analysis

Sensitivity analysis can help you measure how different scenarios might play out financially. For example, if you increase the Operational Expense or Fixed Cost or add another employee to the payroll, how many extra sales will be needed to recover that additional expense?

We have included a Sensitivity analysis to our Financial Model which will help the user to determine sales. The analysis will help you know at a glance, the profits generated at the various sales levels. The Sensitivity Analysis refers to the point where your total sales contribution refers to fixed cost at zero profit and loss.

7: CAC-CLTV Analysis

CAC-CLTV analysis will help the user to determine how much cost is incurring per-customer basis and what is benefit the user is getting from that customer. For example, if $20 has spent to acquire one customer that particular customer will bring $200 revenue.

8: Diagnostic Sheet

This Diagnostic sheet is a new inclusion to our financial model. This automatically explains the condition of the business. For example, if your company’s profit is 30% of the total sales the sheet will include favorable comments.

The comments automatically connected to the numbers of financial data in the income statement, balance sheet, and Cashflow. The Diagnostic Sheet is very helpful to give the company’s insights in just one line.

9: Dashboard

Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you a graphical management tool that enables you to track all your relevant financial KPIs, improve cash flow management, and track expenses, sales, and net revenue in detail to meet and outperform the financial objectives of your business.

Key Inputs of Accounting Software Excel Financial Model

1: The growth rate Price and Expense.
2: Various Bougerts with prices and segmentation of revenue
3: Marketing Budget Sheet (which measures how many customers we get from marketing).
4: Revenue Assumptions.
5: Average Payable and Receivable days your business is following
6: Cost of Goods.
7: Fixed Asset and Capital Expenditure.
8: Tax Rate.
9: Investment table.
10: Loan table

How To Use Accounting Software Excel Financial Model

On the Input tab, you can feed the financial information for the model, such as sales price, cost, expenses, etc. Inputs are shown in this model with a Peach fill and call up (direct links from other cells) filled in grey with black letters while calculations depict white fill and black characters.

In the sensitivity analysis tab, you can see a high-level report with the main business scenarios. The tab shows how the company’s profit will look in case of any uncertainty. For example, if the cost or expenses increased by 10%.

Calculations: This is where all calculation performs. The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign, deducting the business variable and fixed costs. With the help of working capital assumptions, we have measured the impact on business cycles. In last, the level of the investment. Consider calculating the relevant debt financing.

Moving to the Project Valuation tab, a company valuation performed by using the free cash flows with discount rates to the firm. Then a series of investment metrics are presented (IRR, NPV, ROE).

The Dashboard tab: Various graphs present the revenues, cash analysis, break-even analysis, sensitivity, assets vs. liabilities, startup summary, etc.

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