Manual for Cashflow Plan - ?· Cashflow Plan Cashflow Plan Comprehensive Business Cashflow Planner for…

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Cashflow Plan

Cashflow Plan

Comprehensive Business Cashflow Planner

for

Microsoft Excel for Windows

by

PlanWare - Invest-Tech Limited

Free, Micro, Lite, Plus, Super & Ultra Versions with combined US/Canadian & UK/International formats

Cashflow Plan

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Cashflow Plan Comprehensive Business Cashflow Planner

Table of Contents

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Table of Contents ........................................................................................................... i

Very Quick Start ................................................................................................ vi Installation of Cashflow Plan (Windows 95/98/NT/2000/XP) ....................................vi Installation of Cashflow Plan (Windows 3.1) .............................................................vii Familiarization with Cashflow Plan ............................................................................vii Using Quik-Plan - Part 1 ............................................................................................viii Using Quik-Plan - Part 2 ............................................................................................viii Building a New Model ................................................................................................. ix

List of Toolbar Buttons..................................................................................... xi

Creating a Plan within Ten Minutes ............................................................... xiii

1. Welcome to Cashflow Plan ..................................................................... 1 1.1. Welcome............................................................................................................ 1 1.2. Powerful & Easy-to-Use ................................................................................... 2 1.3. Scope of Manual................................................................................................ 2 1.4. Help System ...................................................................................................... 2 1.5. Typographical Conventions .............................................................................. 3 1.6. About Exl-Plan - Business Financial Planner ................................................... 3 1.7. About PlanWare - Invest-Tech.......................................................................... 4

2. Cashflow Planning................................................................................... 5

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2.1. Introduction to Cashflow Planning.................................................................... 5 2.2. Profit vs. Cashflow............................................................................................ 5 2.3. Calculating Cashflows....................................................................................... 6 2.4. Cashflow Forecasting ........................................................................................ 6 2.5. Planning to Forecast .......................................................................................... 7 2.6. Planning Pitfalls ................................................................................................ 8 2.7. Reviewing Projections....................................................................................... 8 2.8. More about Planning ......................................................................................... 9

3. Introducing Cashflow Plan ................................................................... 10 3.1. Introducing Cashflow Plan.............................................................................. 10 3.2. Versions of Cashflow Plan .............................................................................. 10 3.3. Scope of Cashflow Plan .................................................................................. 11 3.4. Facilities & Features of Cashflow Plan........................................................... 11 3.5. Assumptions Handled by Cashflow Plan ........................................................ 12

3.5.1. Sales, Cost, Inventory & Expense Assumptions ................................... 12 3.5.2. Fixed Asset, Investment & Financing Assumptions ............................. 12 3.5.3. Credit & Input/output Tax Assumptions ............................................... 13

4. Loading Cashflow Plan for First Time ................................................. 14 4.1. Installation of Cashflow Plan (Windows 95/98/NT/2000/XP) ....................... 14 4.2. Installation of Cashflow Plan (Windows 3.1) ................................................. 15

5. Getting Started with Cashflow Plan ..................................................... 16 5.1. Getting Started with Cashflow Plan ................................................................ 16 5.2. Familiarization Exercises ................................................................................ 16

5.2.1. Familiarization - Part 1.......................................................................... 16 5.2.2. Familiarization - Part 2.......................................................................... 17

5.3. Protecting Your Work ..................................................................................... 18 5.4. Printing ............................................................................................................ 19 5.5. Zoom Settings.................................................................................................. 20 5.6. Fast Entry of Assumptions .............................................................................. 20 5.7. Cashflow Plans Toolbar ................................................................................. 21 5.8. Freezing Titles................................................................................................. 21 5.9. Changing Views of Reports ............................................................................ 22 5.10. Miscellaneous Hints & Tips .......................................................................... 22

6. Using Cashflow Plan ............................................................................. 24 6.1. Using Cashflow Plan ....................................................................................... 24 6.2. Starting to Use Cashflow Plan......................................................................... 24

6.2.1. Erasing Existing Values ........................................................................ 24 6.2.2. Gathering & Entering Assumptions ...................................................... 25

6.3. Structuring a Model......................................................................................... 26 6.4. Using Quik-Plan .............................................................................................. 26

6.4.1. Outline Procedure for using Quik-Plan ................................................. 26 6.4.2. Procedure for setting up Cashflow Plan prior to using Quik-Plan........ 27 6.4.3. Procedure for Using Quik-Plan ............................................................. 28

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6.5. Model-Building Procedure .............................................................................. 29 6.5.1. Summary of Procedure for Generating Projections .............................. 29 6.5.2. Detailed Guidance on using Cashflow Plan to Generate Projections ... 30

6.6. Avoiding Calculation Errors ........................................................................... 33 6.7. Using Range Limits......................................................................................... 33 6.8. Doing Sensitivity Analyses ............................................................................. 34

6.8.1. General Approach.................................................................................. 34 6.8.2. Sensitivity Analysis Tool ...................................................................... 35

6.9. Viewing What-If Tables .................................................................................. 36 6.10. Making Short-Term Cash Projections........................................................... 36 6.11. Rolling Forward Projections ......................................................................... 37 6.12. Improving Cash Flows .................................................................................. 38 6.13. Consolidating Projections ............................................................................. 38

7. Changing Cashflow Plan....................................................................... 40 7.1. Changing Cashflow Plan ................................................................................. 40 7.2. Making Simple Changes ................................................................................. 41

7.2.1. Changing the Name of an Existing Variable......................................... 41 7.2.2. Entering New Assumption Rows .......................................................... 42 7.2.3. Plugging New Variables into an Existing Variable .............................. 42 7.2.4. Extending the Power of Plugging In ..................................................... 42 7.2.5. Using Formulae Instead of Values ........................................................ 43 7.2.6. Changing Report Layouts...................................................................... 43 7.2.7. Combining Simple Changes .................................................................. 43

7.3. Making Complex Changes .............................................................................. 44 7.3.1. General Procedure for Complex Changes ............................................. 44 7.3.2. Inserting a New Main Sales Group ....................................................... 45 7.3.3. Inserting an Additional Monthly Expense Item .................................... 46 7.3.4. Inserting a New Balance Sheet Item ..................................................... 46 7.3.5. Deleting a Row...................................................................................... 46 7.3.6. Changing Column Widths ..................................................................... 47 7.3.7. Adding Macros & Range Names........................................................... 47

7.4. Extending Cashflow Plan ................................................................................ 47 7.4.1. Incorporating Actuals with Projections................................................. 47 7.4.2. Updating Projections with Actuals........................................................ 48

8. Support & Assistance ........................................................................... 50 8.1. Support Policy ................................................................................................. 50 8.2. Model Development Services ......................................................................... 50 8.3. Other Products................................................................................................. 51 8.4. Contacting PlanWare - Invest-Tech ................................................................ 51

Appendix - 1 License Agreements ............................................................ 53 License Agreement for Commercial/Registered Versions.......................................... 53 Additional License Terms for Unregistered Shareware (Trial) & Freeware Versions54 Additional License Terms for Distribution of Unregistered Shareware ("Trial") & Freeware Versions....................................................................................................................... 55

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Appendix - 2 Lists of Reports & Charts .................................................... 56 List of Reports ............................................................................................................. 56 List of Charts ............................................................................................................... 57

Appendix - 3 Adapting Cashflow Plan to Different Business Types ...... 58 Manufacturing ............................................................................................................. 58 Distribution.................................................................................................................. 59 Services ....................................................................................................................... 60 Hybrid & Multi-site Businesses .................................................................................. 61

Appendix - 4 How Quik-Plan Handles Assumptions ............................... 62

Appendix - 5 Guidance on Entering Assumptions................................... 64 Monthly Assumption Report No. 1 - Sales & Finished Goods Inventory Targets ..... 64 Monthly Assumption Report No. 2 - Direct Costs...................................................... 66 Monthly Assumption Report No. 3 - Overhead Expenses .......................................... 68 Monthly Assumption Report No. 4 - Fixed Assets ..................................................... 69 Monthly Assumption Report No. 5 - Funding, Interest Rates & Related Items ......... 70 Monthly Assumption Report No. 6 - Receivables, Payables & Phasing of Opening Balances 73 Monthly Assumption Report No. 7 - Input & Output Taxes....................................... 74 Opening Balance Sheet ............................................................................................... 75

Appendix - 6 Calculation Error Messages ................................................ 76

Appendix - 7 Glossary of Terms................................................................ 79

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NOTICE TO USERS

The manual and associated software are supplied under license agreements and may be used only in accordance with the terms of these agreements which are set out in Appendix 1. CAREFULLY READ THESE LICENSE AGREEMENTS. USE OF CASHFLOW PLAN CONSTITUTES YOUR ACCEPTANCE OF THEIR TERMS. IF YOU DO NOT AGREE TO THEIR TERMS, DO NOT DISTRIBUTE, INSTALL AND/OR USE THIS SOFTWARE. USE OF THIS SOFTWARE IS CONDITIONED UPON COMPLIANCE BY USER WITH THE TERMS OF THESE AGREEMENTS.

As PlanWare - Invest-Tech has a policy of continual product improvement, the information and data contained in this manual are subject to change without notice a...