Budget-Plan Express – a software product for financial planning, analysis and preparation of business plans
Budget-Plan Express – it is a modern and affordable, easy to use software product for financial planning, for the development and preparation of business plans, presentations, financial and investment analysis. The developer of the software product Budget-Plan Express is «Strategic-Line», LLC.
See the video presentation or a promotional video, as well as see the video course on financial planning, the video course will help you in several hours to master the tools of the program and begin practical planning.
Create a business plan yourself
For a number of reasons, the development of business plans is considered a labor-intensive process, which is why most companies try to order a business plan «on the side». With the use of a specialized software product, everything changes, as the most time-consuming processes for the development of the financial part of the business plan will be undertaken by the program.
Now you can independently develop business plans. Of course, using the program will save your money, but much more valuable is the development of positive financial planning practices, which in itself increases the level of management and the quality of decision-making.
The first objective of financial planning is the development of financial plans and reports, only then you can proceed to the analysis, without which the business plan has no practical meaning, that is, you need to calculate the integral indicators (PB, DPB, NPV, PI, IRR, etc.). The basis for calculating investment performance indicators (integral indicators) is net cash flow (NCF).
Any business plan can be conditionally divided into 2 main parts: general description and financial calculation ...
Analysis based on financial ratios (coefficient analysis) allows you to examine the financial condition, performance and investment potential of the organization, and includes the following groups of indicators:
1. Liquidity Ratios: absolute liquidity (Cash ratio); Urgent liquidity (QR); current liquidity (CR); net working capital (NWC).
Indicators of investment efficiency. Calculation of key indicators
In Budget-Plan Express all key integral indicators are calculated, as well as other indicators that are calculated, including on their basis:
☛ Note that the basis for calculating investment performance indicators (integral indicators) is net cash flow (NCF). To obtain a net cash flow from the total cash flow, financing (credit financing and equity instruments) is completely excluded.
Legal address: DUBROVSKAYA 1-YA, 13
Specialization, competencies: development of own software for financial planning, development of business plans and analysis, reporting and planning in IFRS, integration with MS Office applications and other applications. The company also has experience and competence in the field of performance management (PM), experience in managing the team when implementing projects.
Budget-Plan Express - an active addition to your MS office
Methods and algorithms for calculating credit (leasing) products
In "Budget-Plan Express" you can easily plan for credit or leasing products of any complexity. For ease of operation, three types of products are identified for users, which the user selects from the list: "Standard", "Annuity", "Consumer". Choosing the type of product, the user immediately selects the formula and the standard algorithm by which payments will be calculated.
Using the advanced settings, the user can model virtually any unique loan product.
Eliminate the deficit of cash or temporary cash shortages
In the final stages of planning, in the final line of the report on movement of funds (Cash flow) may generate negative values, which mean a shortage of cash or temporary cash gap (cash deficiency), i.e., the lack of funds needed to Finance the next ensuing costs. In contrast to the production of the current gap, a temporary financial gap can be predicted.
If the schedule in the last periods of the project was in the negative zone, this has nothing to do with the cash gap, but in this case the project is unprofitable (non-viable).
Model weighted average cost of capital – WACC
Model weighted average cost of capital (WACC) represents the weighted average yield expected from all invested in the company capital, both own and borrowed.
WACC is calculated by computing a weighted value of the component sources of financing according to the following formula:
WACC = [Ve / (Ve + Vd)] × ke + [Vd / (Ve + Vd)] × kd × (1 – T)Where:
Ve – the amount of capital of the company;
Vd – borrowed funds;
ke coefficient of cost of own capital;
kd coefficient of cost of borrowed capital;
T – is the income tax rate.
Preparation of reports and business plans in Word
A ready business plan can be transferred from the program directly to Word - in the currency and in the language that the user chose (Russian, English or the user's language).
The process of creating business plans in Word is as much as possible automated. The first stage creates a document in Word, where the marked tables are exported - in that currency and in the language (Russian, English or user language) that the user has chosen. At the same time, the business plan is a "free" report, not limited to the standards, and includes a whole range of materials and illustrations - analytical text, conclusions, table fragments, graphs, risk analysis, variant analysis, etc.
Finalization of the business plan for the project, including the layout of the material, design and design - these are the following stages, which may take much longer. However, most of the "routine" work on creating financial tables for you will make the program.
Preparation for planning. "Translit"
"Translit" is a special function for translating the text of tables (plans) into other languages (Russian, English and "user" language).
In some cases, "translit" is used to customize the tables, in accordance with the requirements of corporate reporting. For example, the company's reports use the term "Marginal profit", instead of "gross profit".
When preparing business plans, the texts of the tables can also be translated into any other foreign ("user") language. This can be relevant, for example, if a partner of the company prefers to use reporting in their own language (in the "user" language). In other words, for internal use there can be one language for the text of tables, for external partners and investors, another.
An example of calculation of a plan for the production of a 12-storey 3-section residential complex
The example demonstrates approaches to planning the stages of construction and installation works, gives useful recommendations for simplifying the process and improving the quality of planning.
The summary estimate report is also important for analyzing the cost structure in percentages, and in this example it will be demonstrated. So, for example, the construction of a multi-apartment apartment house assumes roughly the following cost structure, on average in Russia in 2016 (see detailed example) ...
Note that the description of the construction business plan using the Gantt chart and the "cost structure" tied to it is the fastest and most effective way of developing financial tables. The reason is that using the Gantt chart, not only important milestones are described, but almost all construction costs, with the exception of associated costs, are not many: land (from 6 to 15% of the cost of construction), credit load (about 10-15 %), marketing (3-10%), content of the device (3-8%).
An example of the capitalization of costs (attributing the value of non-current assets)Capitalization costs are reflected not in the composition of the "income statement", but as part of the asset or liability balance. For this reason, capitalization distorts the financial result, since the cost of capitalized costs is not equal to the cost of written-off costs or costs. In business planning, this approach is not acceptable, therefore, for planning and financial analysis, capitalization of costs "for the implementation of production stages" is always included in the income statement. Thus, in the income statement, revenue and cost are to be fully reflected, including both targeted financing and developer's remuneration.
To account for the capitalization of costs (assigning them to the value of non-current assets), for example, in construction projects, a special algorithm is used.
Capitalization costs are reflected not in the composition of the "income statement", but as part of the asset or liability balance. For this reason, capitalization distorts the financial result, since the cost of capitalized costs is not equal to the cost of written-off costs or costs. In business planning, this approach is not acceptable, therefore, for planning and financial analysis, capitalization of costs "for the implementation of production stages" is always included in the income statement.
Thus, in the income statement, revenue and cost are to be fully reflected, including both targeted financing and developer's remuneration.
Plan production. Create a Gantt chart or export (import) from MS Project
The Gantt chart is created using the program interface, but you can import it from MS Project if you want. The diagram is transformed into the financial table "cost plan for the realization of the production stages".
The Gantt chart is nothing more than a unique format for editing and presenting data, in addition to other common formats - graphical and tabular representation of data. The Gantt chart has become widely used in business planning of projects, most likely for the simplicity and adaptability of the planning process. In the Gantt chart it is customary to use some specific names and terms related to the features of network planning: "lag", "percentage of execution", "resource type", etc.
Note that the description of the business plan, for example, construction using the Gantt chart and transferring data to the cost table is the fastest and most effective way of developing financial tables.
Methods of calculation of indicators of investment efficiency (PB, DPB, NPV, PI, IRR) for simple examples
In the calculation of the majority of integral indices, we use discounted cash flow. Discounted cash flow (DCF) – method of evaluation used to analyze the attractiveness of certain investment opportunities. Discounted cash flow analysis (DCF) uses the estimated future free cash flows and discounts them (most often using weighted average cost of capital, WACC) to obtain their true value, to obtain adjusted estimates of the potential investment.
Discounted cash flow is calculated by the formula:
DCF = ∑ CFn (1 + r)-nWhere:
CFn – the amount of cash flow for n periods;
r – the discount rate (for example, the discount rate can use weighted average cost of capital, WACC);
n – the number of periods that give rise to cash flows.
Features of the calculation of cash flows in the Budget-Plan Express
For the calculation of investment performance (PB, DPB, NPV, PI, IRR and others) used two methods for determining initial investment and net income. In the first and in the second case, you must first:
1. Get net cash flow (NCF).
2. Find net investments (need for financing) using the following algorithm::
❷ In this numerical series, the first negative amount of the series refers to investments.
❸ In the subsequent negative amounts of the numerical series, only negative growth is related to investment, and after any positive amount, the increment accounting is interrupted - until the first negative amount appears, and so on
3. Find the net income. To do this, from the net cash flow (NCF) are deducted the net investment.
Further, depending on the chosen method, will be compared to the net income and initial investment where the initial investment in the first case, the net need for investment in the second – sources of funding.
Method of correcting price fluctuations
In some cases, there is a need to adjust some prices to account for the effects of external factors on price changes.
The need for adjustments may not be associated with the modeling of factors external risks. For example, the basis price forecasts were taken from the projections of the wholesale prices more volatile than prices at subsequent stages in the chain of sales.
In the first case it is possible to use a method of correcting price fluctuations, mathematically "describe" the possible influence of factors external risks. In the second case, can be a useful method of smoothing short-term fluctuations.
And in the first and second cases, moving average models are used.
Before starting the planning, it is recommended to read the basic materials and examples contained in the online Help (user's guide). Read also the "Announcements of the possibilities of the Budget-Plan Express software", see the video lessons on practical planning with examples of business plans and other materials posted on this site, this will allow you to quickly master the tools and interfaces and start using the full range of software features.
☛ Register with one click, using your social network or popular services Yandex, Google and others. In the Personal Office you can create (print) the entire package of documents (accounts, contracts, certificates, etc.), perform online payments, and send messages, here you can download the program installation files and updates. If you do not want to register, you can issue an invoice for payment or make an online payment without registering.
See useful materials with examples and descriptions of practical planning techniques
Sales plan. Practical planning. Models moving averages (SMA, WMA и EMA)