Video Tutorial Business Plan 1: Investment

Open the spreadsheet entitled Business Plan Spreadsheet.   Business Plan Spreadsheet

There are three sheets for the Excel spreadsheet.

The first sheet contains a trial balance, income statement and balance sheet for a merchandising business.

The second tab is the place where you will enter numbers - like a journal.

The third sheet contains a trial balance, income statement and balance sheet for a service business.

The numbers will appear in the appropriate cells on the first page and third pages producing your financial reports.

For the business investment, select the tab 2 worksheet.

Every accounting transaction affects two accounts.

Select cell B3 and enter the amount of your initial investment.

Select cell E3 and enter the same number.

For a merchandising business, return to Sheet 1 by clicking its tab. Notice the numbers that you entered appear on this sheet.

For a service business, click on Sheet 3.Notice the numbers that you entered appear on this sheet.

Business Loan Balance Sheet Day 22: VB10 General Ledger instructions

1. Decide which assets are necessary to run your business.
2. These can include, equipment, furniture and fixtures, inventory, etc.
3. Find description, quantities, and costs for these items.
4. Decide how much operating capital is needed to get your company off to a good start. You can use a number of months of operating expenses.. Do not include the Business contract for payroll, but do include, rent, utilities, insurance, etc.
5. Calculate the amount of your loan.
6. Loan from VEC is for 7 years at 7 percent. Starting date November 1 of the current year.
7. Loan Calculator
8. Write down or printout his information.
9. Use Browser's Refresh button to clear frame.
10. You need monthly payment and first month's interest and principal.
11. Look at Lovebytes financial section for the accounting entry to record this loan

Business Loan Balance Sheet Day 22: Spreadsheet instructions

    Video Tutorial Business Plan 2: Business Loan

1. Notice the numbers that you entered appear on this sheet.
2. Decide which assets are necessary to run your business.
3. These can include, equipment, furniture and fixtures, inventory, etc.
4. Find description, quantities, and costs for these items
5. Decide how much operating capital is needed to get your company off to a good start. You can use a number of months of operating expenses. Do not include the Business contract for payroll, but do include,
6. Rent - $3,500 per month
7. Workers' Comp insurance $110.00.
8. Utilities: Water $3.00 for each employee, Gas $3.00 for each employee, Electricity $30.00 for each employee, Phone $25.00 for each employee, Internet $350.00 for the company, $99.00 Cable for entire company.
9. Calculate the amount of your loan.
10. Loan from VEC is for 7 years at 7 percent. Starting date November 1 of the current year.
11. Loan from VEI new guidelines is for 5 years at prime rate +2% fixed loan, prime +1% variable.
12. New VEI guidelines call for a 5 year loan. Interest rate is prime rate + 1% for a variable loan and prime rate + 2% for fixed rate. Use November 1 of the current year.
13. Loan Calculator
14. Write down or printout his information.
15. Click the browser's Refresh button to clear the frame.
16. You need monthly payment and first month's interest and principal.
17. Open the Business Plan Spreadsheet    Business Plan Spreadsheet
18. Enter the total amount of the loan on Sheet 2 cell B4 and G4.

Recording purchase of assets Balance Sheet Day 22:VB10 General Ledger Instructions

    Video Tutorial Business Plan 3: Purchase of assets

1. The reason for the loan was to obtain necessary assets to run the company.
2. We also got some extra money for operating expenses.
3. Listen to the video tutorial on how to handle this entry.
4. Use the posting portion of the program to record this entry.

Recording purchase of assets Balance Sheet Day 22: Spreadsheet Instructions

1. Open up the Business Plan Spreadsheet.   Business Plan Spreadsheet
2. You need to buy equipment, fixtures and fixtures.
3. Click on the tab for Sheet 2
4. Select cell C5 and enter the total amount spent for equipment,furniture-fixtures and inventory.
5. Select cell H5 and enter amount spent for equipment
6. Select cell J5 and enter amount spent for furniture and fixtures
7. Select cell L5 and enter amount spent for Inventory if you are a merchandising business, this number will appear under inventory.
8. If you are a service business, the amount entered in L5 will appear as Other Assets
9. You have entered enough information to produce a beginning balance sheet for your company.
10. Click on the appropriate sheet 1 or sheet 3, scroll down to the balance sheet. Put it on the clipboard and paste it into your business plan document.
11. The following transactions are entries for your first month of operation.

Calculating and Recording the Business Contract: Day 23: Spreadsheet Instructions

    Video Tutorial Business Plan 4: Business Contract

1. First we must determine the amount of the business contract,
2. The number is composed of the total amount of our gross payroll and cost of goods sold if we are a merchandising business.
3. Here is a sample payroll. Sample Payroll
4. To calculate your payroll, read the following instructions  Instructions
5. Fill in the necessary payroll information for your company.
6. Save this spreadsheet.
7.   Sample Payroll Template
8. Print out your payroll, you will need later for the numbers calculated.
9. Open up the Business Plan Spreadsheet.   Business Plan Spreadsheet
10. Select cell B8 and enter the total amount of the gross payroll. New guidelines limit you to 75% of this amount. This is the amount of cash the VEC will deposit in your account each month.
11. Select cell O8 and enter the amount of the business contract
12. If you have a business that sells merchandise, you need to find the cost of sales percentage too. This is money that the VEC will deposit in your account each month.
13. A program called bizstats.com can give you the answer you are looking for
14. Business Statistics
15. Assume that your cost of sales percentage was 52.82%. This is the cost of sales for a clothing store.
16. Multiply that percentage times the gross amount of your payroll.
17. Assume that your payroll was 83,328.00. These numbers came from the sample payroll
18. Multiply 83,328 times .5282. The cost of goods sold answer is 43,356.42
19. Next add the payroll and cost of sales together 83,328.00 + 43,356.42
20. The amount of your VE contract therefore is: 126,684.24
21. Click the browser's Refresh button to clear the frame.
22. On Sheet 2,Select cell B9 and enter the amount of cash you will receive from the cost of sales amount
23. On Sheet 2, Select cell Q9 and enter the amount of cost of goods sold for the business contract.

Recording payment on note payable - money borrowed from VEC Day 23: Spreadsheet Instructions

    Video Tutorial Business Plan 5: Payment on Loan, Monthly expenses, and purchases of merchandise

1. On Sheet 2, Select cell C11 and enter the monthly payment amount.
2. On Sheet 2, Select cell F11 and enter the amount paid toward the principal of the note.
3. On Sheet 2, Select cell R11 and enter the amount monthly interest paid.

Paying monthly expenses Day 23 : Spreadsheet Instructions

Standard Payment Rates for Companies
1. We are only going to pay for three regular expenses. Water, gas, electric, Internet, phone, etc sre all considered utilities expense. See Link above on how to calculate these expenses.
2. On Sheet 2, Select cell C14 and enter total cash paid for regular expenses
3. On Sheet 2, Select cell T14 and enter amount paid for rent
4. On Sheet 2, Select cell V14 and enter amount paid for insurance
5. On Sheet 2, Select cell X14 and enter amount paid for utilities

Recording the purchase of merchandise for the month Day 23, FOR MERCHANDISING BUSINESSES ONLY: Spreadsheet instructions

1. On Sheet 2, Select cell C16 and enter amount of cash spent on purchases
2. On Sheet 2, Select cell Z16 and enter amount of merchandise you need to purchase.

Recording salary expense for the month Day 23: Spreadsheet Instructions

    Video Tutorial Business Plan 6: Salary Expense and Payroll Taxes

1. Look at your payroll register for the following numbers
2. On Sheet 2, Select cell C18 and enter Total Net Pay
3. On Sheet 2, Select cell AB18 and enter Total Gross Pay - before all deductions
4. On Sheet 2, Select cell AE18 and enter Social Security
5. On Sheet 2, Select cell AG18 and enter Medicare
6. On Sheet 2, Select cell AI18 and enter Federal Income Tax
7. On Sheet 2, Select cell AK18 and enter State Disability Insurance (SDI)
8. On Sheet 2, Select cell AN18 and enter State Income Tax
9. On Sheet 2, Select cell AQ18 and enter State Training Tax

Recording payroll taxes for the month Day 24: Spreadsheet Instructions

1. Look at the payroll register for the section on payroll taxes.
2. On Sheet 2, Select cell AR20 and enter Total amount of payroll taxes expense
3. On Sheet 2, Select cell AG20 and enter Medicare amount
4. On Sheet 2, Select cell AE20 and enter FICA amount
5. On Sheet 2, Select cell AW20 and enter FUTA Amount
6. On Sheet 2, Select cell AY20 and enter SUTA Amount
7. On Sheet 2, Select cell AQ20 and enter State Training amount

Examining the trial balance, income statement and balance sheet Day 24: Spreadsheet Instructions for a service business

    Video Tutorial Business Plan 7: Examining Financial Statements for a service business

1. If your spreadsheet is not open, open it now.
2. Look at the trial balance Sheet 3 for a service business.
3. Is it in balance? Do the debit totals equal the credit totals?
4. If they are not in balance, go back through the entries on Sheet 2 and correct any mistakes.
5. Look at Sheet 2. All the way to the right hand side of all data.
6. For each line the debits must equal the credits.
7. If they are not in balance go through the entry and make certain that you entered the numbers in the correct cells.
8. In addition all debit entries must equal all credit entries.
9. An income statement and balance sheet are automatically created for you.
10. If you made a profit, printout the trial balance, income statement and balance sheet and continue with Day 25.
11. Chances are that your income statement shows a loss
12. Since the purpose of this assignment is to obtain a business loan, a loss is not what we wnt to show to the bankers.
13. Watch to the Video tutorial 7 to see how to show a profit.

Examining the trial balance,income statement and balance sheet Day 24: Spreadsheet Instructions for a merchandising business

    Video Tutorial Business Plan 8: Examining Financial Statements for a merchandising business

1. Look at the trial balance and make sure that it is in balance. The debit totals should equal the creit totals.
2. Look at the income statement. Did you make a profit?
3. If you did not make a profit? If you did make a profit just print out the trial balance,income statement and balance sheet. Skip down to Day 25
4. If you did not make a profit, we need to determine how many additional sales we need to break even.
5. Break-Even Sample
6. Break-Even Analysis Template

To see a completed spreadsheet, click here  Completed Sample Excel Spreadsheet

Projected balance sheet for 4/30/XX Day 24

1. Run the VB10 General ledger program and record these transactions.
2. Check to see if you are in balance after each entry
3. Use the company Information tab to key in your company name and the date.
4. For this balance sheet key in 10/31/XX
5. Click on the income statement tab for either a service or merchandising business
6. Click on the balance sheet tab
7. Create a file with a printable balance sheet
8. From Notepad or Notepad++ look at the balance sheet
9. Do a screen capture using the Print Screen Key
10. Paste this report into a program like Microsoft Paint.
11. Crop it if necessary
12. Save it as a .jpg picture file so that it can be easily be inserted into your business plan.

Projected Income Statement Day 25

1. Find the following amounts to create a projected income statement for November 30, XX
2. Look in the Break-Even Analysis
   • The amount of the Virtual Enterprise Business Contract
   • Estimate of sales at Bakersfield Trade Show
   • Payroll taxes expense
   • Salary Expense
   • Rent Expense
   • Utilities expense
   • Insurance expense
   • Depreciation expense on equipment and furniture and fixtures
   • Principal portion payment of loan
3. Run the VB10 General Ledger Program
4. Retrieve your file
5. Post all revenue and expenses.
6. Click on Trial Balance Tab to see if you are in balance.
7. Click on the Income Service tab to see projected net income.
8. All that needs to be done to make this an actual income statement is to enter the true amount of sales from open house and/or trade shows into the program
9. Add the income statement to the business plan as a jpg picture.
10. Projecting other months of income
11. Load in the spreadsheet template from the accounting tutorial chapter 4
12. Enter the numbers
13. Create a link to the income projections spreadsheet in the text of the business plan.
14. Service business projections
15. Merchandising business projections

Income Projections: Day 25 :Spreadsheet Instructions Optional Assignment

1. Load the following spreadsheet for a service business  Service business projections
2. Load the following spreadsheet for a merchandising business  Merchandising business projections
3. Plan on how much you think you will get in revenue at Trade Shows, open houses and grand openings.
4. There three or maybe four trades shows in California: December, March, April and maybe February in Long Beach.
5. New York show is in April. Sales are not typically high there
6. Get Visitor checks - $2,000 value for your open houses. You will need to generate more revenue each month than the VEC gives you.
7. Refer to your financial statements and enter your numbers. Save and print.
8. For more detailed instructions, refer to the Accounting Tutorial Chapter 3 Continued.

Cash Flow Statement: Day 26 & 27

1. On janetbelch.com web page, in the accounting training, chapter 4 second half, load the cash flow template
2. Enter the appropriate numbers.
3. Copy and paste expenses :Rent, Salaries, Payroll taxes, Insurance, Utilities into each month
4. Interest expense changes each month. Use amortization schedule for 7 year 7% loan. New guidelines from VEI uses 5 year term and prim rate +1% or + 25
5. Remember that when you have charge sales like at trade shows, the money does not come at the time of the sale.
6. Assuming that you send an invoice for the goods or services purchased, you should receive the money the next month.

Cash Flow Day 26 and 27: Spreadsheet Instructions: Optional Assignment

• For more detailed information, refer to the Accounting Tutorial, Chapter 5

Financial Write-Up: Day 28 for both spreadsheet method and VB10 General Ledger methods

1. Explain the financial statements. Where did you get all the numbers? How did you arrive at the data?
2. How did you estimate sales
3. Assets needed to run the business
4. How did you arrive at the numbers needed in the business loan?
5. Explain payroll amounts and payroll costs.
6. How did you complete the Cash Flow Analysis
7. See Business Plan Written Rubric if you are a continuing company with actual financial statements

Start-Up Business Plan additional items: Day 29.

1. Completed loan application
2. Time needed to repay the loan
3. Start-Up Budget

Completed Sample Excel Spreadsheet

Printer Friendly Spreadsheet Instructions