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!!!HELP!!! What do you think of this Operating Budget

  • 21-12-2016 11:07pm
    #1
    WellKiiid??
    Registered Users Posts: 75 ✭✭


    I dont know if im aloud post this here, but im trying to do an operating budget for a business plan i have.

    As you can probably tell from looking at it i dont really know what im doing.

    Im wondering about the 'Opening and Closing stock values', i dont really know how to calculate them.

    Feel free to tear this apart

    I have no idea how to estimate how much tax is to be paid so that figure is probably way off

    Thank you in Advance.
    Tagged:


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    Ok where are you getting your sales price from.

    Where are you getting your purchase price from.

    The closing stock at end of the first year is the amount of animals you have left unsold. Are you buying them in or rearing them?

    Overheads break it down, bank loan does not go into a Profit and loss, it does go into a cash flow which are you trying to do?


  • #3
    L.Jenkins
    Moderators, Computer Games Moderators, Technology & Internet Moderators Posts: 19,241 Mod ✭✭✭✭L.Jenkins


    Typically you would do a cash flow for three years (Your expected sales - expected expenses = profit/loss), to go with a business plan.
    • Assume your opening inventory on the 1/1/2017 is 0.
    • How much stock do you intend on purchasing? How much will it cost? What will be that sales price?
    • What will your operating costs be? Electricity, Phone, Rent etc. All should be noted as separate expenses.
    • Do you have loans or investments that require repayment? These should be noted as monthly repayments or totaled as annual repayments in a 3 year cash flow statement.

    Have a look at the attached, primarily the trial balance. Potential investors wouldn't be interested in a Statement of Profit/Loss and Statement of Financial Position until the year end of your first year of operation.


  • #4
    WellKiiid??
    Registered Users Posts: 75 ✭✭WellKiiid??


    Iv done some more work on this i dunno if its right or not though.

    Again, i have no experience in accounting im just doing this to see if this business is possible.

    i used a template i got from somebody.

    You can look at it in the attachment.

    My problems are:

    1. "New Funds Drawn Down To Current A/C"
    Is this money that i have obtained through a loan from the bank. Thats what i have it down as.

    2. "Taxation
    How do i put an estimate on this?

    3. "Net cash flow"
    What does this mean and how do i calculate it?

    4. Closing Current A/C Balance
    Again, what does this mean and how do i calculate it?

    Thanks in advance for the help.


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