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Financial Management4Biz
Continued
 The
financial section of your business
plan should include any loan applications you've filed,
a capital equipment and supply list, balance sheet, break-even
analysis, pro-forma income projections (profit and loss
statement) and pro-forma cash flow.
The income statement and cash flow projections
should include a three-year summary, detail by month for
the first year, and detail by quarter for the second and
third years.
Accounting Inventory Control System
The accounting system and the inventory control system
that you may be using can also be addressed in your business
plan. Whether you develop the accounting and inventory system
yourself, or have an outside financial advisor develop the
system, you will need to acquire a thorough understanding
of each part of it and how it operates.
The following questions should help you determine the amount
of startup capital you will need:
Other questions that you will need to consider are:
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What type of accounting system will your
use?
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What will your sales goals and profit
goals for the coming year be?
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What financial projections will you need
to include in your business plan?
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What kind of inventory control system
will you use?
Your plan should include an explanation of all
projections. Unless you are thoroughly familiar with financial
statements, get help in preparing your cash flow
and income statements and your balance sheet.
Your aim is not to become a
financial wizard, but to understand the financial tools well
enough to gain their benefits. An accountant or financial
advisor can help you accomplish this goal.
For a more detailed explanation
of these and other more complex financial concepts, contact
your local
SBA Office.
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