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Billing statement format for Procurement

[Music] hello in this video I'm gonna walk you through the financial model example template I will show you the main inputs the core outputs reports and charts so let's get started [Music] the dashboard tab you can input your main drivers for the model which is call input section see the core financials and chord charts related to the model so let's begin setup of the model from the launch date which can be for example April you may see the nodes in each yellow cell when you select it to help you to understand what information or what the assumptions you are going to input here so the next step is to input your free trial period which can be three months is for example and the next step is to input your marketing budget and visitors assumptions you have two sections here which is offline and online marketing if you don't need for example offline you can just clean this section if you need boss you can keep them boss let me show you how it works let's set up monthly marketing budget through the years means this is average monthly spend on the budget for the marketing let's pretend this is 15,000 plus additional thousand dollar per month across the next years the next step is to input cost per visit or this online stream let's say it's $1 1.1 1.2 1.3 1.4 exactly the same logic for the offline marketing you can input average monthly marketing budget across the years and cost per visit as a result in you have total visitors by years the next step is to convert these visitors to paying customers and using the conversion rates for your sales funnel the first step is to convert your total visitors to sales opportunities you can do this using visitors to sales opportunities conversion rate let's pretend this is 10% you can change them across the years I'll just set 10% across all the years so 129 thousands will be converted to search in point thousands of sales opportunities and the next step is free trials the model assumes that some opportunities can convert directly to paying customers so sales opportunities to free trial can be for example 40 percent and other 60 percent which is 100 percent - 40 will be converted directly from sales opportunities to paying customers if you don't need to skip these three trials you can just put 100 percent and this means that all your sales opportunities will go to free trial and then converge to paying customers let's pretend 80 percent you'll go to free trial first of all and other 20 percent you go to paying customers after sales opportunities so you have eleven thousand of new free trials and other part which is 2.8 thousands will go to new paying customers directly another step is to convert free trial to pain customers after this trial period after three months let's pretend this is ten percent conversion so you have two point eight thousand which is directly from sales opportunities plus the ten percent of new free trial users which is in total new pain customers at the end of the year and this is broken down by years as well the next step is to allocate your new pain customers across the offerings the model has three offerings here which you can change easily for example you want instead of enterprise use Pro or any other name so you can just allocate using these percentages of new pain customers across these three offers if you don't need one of the offerings you can just clean the location and for example for medium and pro you can keep forty percent and one card at minutes forty this is sixty percent for pro if you need balls you can input ten percent for example for base plus forty percent for me and another 50% you've allocated to bra these percentages are changeable across the years if you make some mistake for example 90% to base what you percent to medium you'll have - Sergey and this is in red color means that something is wrong here because one credit percent means - 90 - 40 uses - 30% which doesn't make sense so you need to change something here and it will show the gray color and the final step you should allocate for each offer in your new customers breakdown which goes to monthly payment cycle and annual payment cycle or upfront 12 months is payment with some discount so again you can use percentages different percentages across the years like 35 40 45 50 and 55 percent so the annual payment cycle this is 100 percent - your monthly payment cycle if you input something wrong like I just did for example Afghanistan 50 percent it will show you that's not correct it shouldn't input more than 100 percent and it will show the red color here which means that something wrong here so if you input everything correct this is in gray color and the same logic for medium and enterprise the second insert offer you so once you set up the dashboard input step variable expenses fix it expands the seasonality wages you can give you your core financials in here and also you can review your charts just profitability cash flow cumulative cash flow and the active customers [Music] this is an elite app you can input your marketing expenses seasonality assumptions allocation by months across the year if you don't need any allocation of parties and expenses you can just put equals 1/12 and copy this across all the manses and you will not have any seasonality across the year means that across all demands is your marketing expenses will be equal by year but if you need them you can input some assumptions or allocate 100 percent of your marketing expenses across the year for example 10 percent 15 5 7 8 3 2 5 10 8 7 and 12 as you may see I just set up this is analogy across the masses and I see the right check that's because the total across the year is not what had a percent it should be always 100 percent so let's adjust so I need to add 8 percent somewhere put input here 6 here is 7 so now everything is 100% for the year and the check is green that's good so below you may see the actual absolute values of marketing expenses across demands and across the years as a totals and at the bottom you may see the chart of breakdown of your marketing expenses by month [Music] on the sass chat step you may see them a sass keep guys and magics broken down by two sets of charts on the left side you can see the monthly Mouse for the two years and on the right side the monthly amount for five years so on the top set of charts who misses the MOR breakdown by three offerings in this case deuces Enterprise medium and bass the next couple of charts will show you the Emerald movement which is new mr our turn mr are by months and as a result on yellow line and we see the active mr are the next couple of charts you will see the lifetime advances of the pace medium and enterprise customers the next couple of chart will show you the lifetime value broken down by offerings the next chart will show you the customer acquisition cost by manses for the two years and the for the five years the magic number broken down by base medium and enterprise and for the total customers the magic number shows you the efficiency of using marketing expenses in terms of the acquisition of new booking average occur in revenue per customer total and reckoned out my offerings new visitors and new customers it shows you the efficiency of your sons funnel conversion rates the MMR grows which show you the numeral in dollars and months or month growth of mr the south quick ratio which shows you the ratio between new mr / jordan tomorrow and one of the important SAS keep eyes to you to ratio it should be also always more than one in this case it is minimum I would say this is to any in this case so business and works very good in this case yeah that's it for this step on the financial chart step you may see the main financial keep your eyes on two sets of charts until that scan to conceive two years working on by manses and from the right side you can see the five years also broken down by Monza's so on the top you may see the Abbott the next set of charts will show you the ABG as well as revenue and cost of services salt as an orange and gray columns then operating cash flow broken down by cash inflow and cash outflow then cash balance chart and productivity kpi's which will show you the average revenue per FG and average of expiry of G then we see the revenue breakdown which is broken down by three offerings and contracts monthly and annual total six different revenue streams and the next chart will show you the revenue breakdown by revenue type which is subscription revenue transactional revenue and setup revenue on the final chart in this sheet you may see the monthly costs broken down by cost of services sold so that is and wages variable experiences and fix-it expenses [Music] on the customer chart step you may see two sets of charts with main customer metrics and this set of charts are two years broken down by manses and five years looking down by masses on the first set of charts you may see the free trial users which means that active free trial users by manses the next chart will show you the customer breakdown which is breakdown by main revenue streams base medium and enterprise by default the next chart shows you the customer breakdown my payment cycles which is monthly an annual payment cycle and the last chart on the sheet will show you the customers movement which includes the new customers by manses charm customer by manses and as a result the yellow line will show you the active customers by month is for the two years and for the five years [Music] on the income statement tab you may see the mail and items of your profit and loss which is total revenue total cost of service assault gross margin salaries and taxes and payroll taxes variable expenses fix-it expenses PPG total depreciation and amortization habit interest expense net profit before tax tax expense and as a result net profit after tax please note that by clicking on this plus button you can unhide each of the category and see digitalisation example folder fix it expenses or variable expenses and for any other category let me see them where lose my manses and all the breakdown by line items on the cashflow tab you may see the cash flow broken down by operating activities financing activities and investing activities cash flow and direct shows you the same operating activities investing activities and financing activities bar but more collapse at form so it's more easy to see the values by manses and more easy to read the numbers on the balance sheet you may see the breakdown of your balance sheet by current assets which is cash and accounts receivable non current assets which is fix-it assets current liabilities non current liabilities and your equity the summary of these three statements you may see on the financial statement summary which will show you the annual numbers or income statement cash flow and balance sheet and using this selector you may select specific year to see this year by manses so on the top you have the main income statement line items and the charts which will show you this information by years and by Monza's then the balance sheet KPIs and charts and the cash flow statement charts and the absolute values [Music] on the keypad tab you can see the main benchmark api's or the sands industry which is a 2v2 churn rate months or months net Amaro's percentage gross margin and ebj percentage you may set the industry specific KPIs which works for your country or for your region for example the EBG a percentage can be 30% for example so you may see on this chart bj percentage now is 30% all the well is calculated by the model using the assumptions you input machine here the values by years and the same information you may see on the charts just to eat to Cacturne ratio maximum and summer gross gross margin and a bj on the each chart the orange column this is industry specific benchmark and blue column this is a value calculated by the model so using this table you can easily compare where are you in terms of the industry specific benchmarks and how is your business works and comparison to other businesses [Music] on the build tab you can find the calculation of Crispian ratio which consists of average burden amount across the year average annual cash balance and calculation of cash burn ratio on the charts bar you can also see the cash burn ratio by EF the top revenue tab we see the very top of your revenue by three main openings whilst additionally the breakdown by monthly and annual contracts all three operands additionally you can see the breakdown by years of absolute values and the burglar by years of percentage allocation on the revenue summary charts you can see the same information graphical form to the percentage breakdown and absolute values break down the next set of chart to me see the revenue depth and monthly run rate for the selected here which may change here for example 20 to 21 the first chart to me see the absolute values and on the pie chart you can see the percentage allocation this revenue streams on the revenue breach you may find the factors or drivers of revenue growth between first year and the last year which are also changeable myself example twenty twenty one to twenty twenty two for me see on the left side of the chart total revenue for twenty twenty one on the right side total revenue for twenty to twenty-four and the factors or drivers of revenue growth work done by all six revenue streams [Music] on the top expenses tab you may find the breakdown of top for expenses categories and all other expenses collapse it into other category can we see the breakdown of absolute values broken down by years with the total below and also to the right to may see the percentage breakdown of these expenses the same information you may see on the charts below you may find the percentage breakdown and the absolute values breakdown and a couple of charts below when we find expenses depth and monthly run rate for selected TR you are able to change this year and when we see the absolute values and percentage breakdown on the pie chart and expenses breach you will find the main drivers of expenses grows between these two years thus years us are also changeable so you may select the first year and you will sell at the last year and you may see that total expenses starting 2020 will change to total expenses in 2024 by this waterfall [Music] the breakeven tab you will find the calculation of revenue break-even level and break-even chart for this particular particular use case and we find that your revenue breakeven level is less than actual revenue calculation this means that company is profitable [Music] a devaluation tab you may see the calculation of company valuation based on the cost of equity which you may input here cost of Lords you previously imported on the dashboard calculation of resource share you may see here there is also tax rate and here we find the weighted average cost of capital in the valuation model there is two valuation methods which is a BGA multiple and revenue multiple you must select one of them and below you may input multiple of methods based in this information we can see terminal value which is calculated on an elaborate free cash flow you may see the present value of an leverage free cash flow and PV and multiplicator a variation for this particular company [Music] when the GCF tap you may see on the top unlevered free cash flow calculation in thousand dollars as a result to me see the unlevered free cash flow and on the bottom you may see this Janerio analysis for your total enterprise value the first scenario factor is discount rate or weighted average cost of capital which is 12 14 and 16 this sales are also changeable and the second factor for the first scenario analysis is a BGA multiplicator so you can use this multiplicator as an assumption as well so you may change it to 8% for example and you may see the different values for your enterprise value the second one is terminal perpetuity growth rate which can be change it as well example 5% and you may see below all the enterprise values scenarios [Music] the decoration table you may see the calculation of investment round and negotiation round up to three rounds for each on the top you may see the assumptions just this year of valuation or exit by default this is five years you can change it to another value for example four or six years you can see the calculation of forecast annual free cash flow and multiplicator based on the valuation tab here is the calculation of elation in future value also based on the evaluation tab then we have the assumptions and calculations for three investment rounds the first one is month's investment and say once number two for example us to require tire our example 45% amount of investment $900,000 duration of advancement which is five years - two months which is 58 months here is a calculation of required future rally for investor and the shares cumulative investor share and cumulative founder share based on these assumptions in terms of negotiation round you can input individual investor share and an assumption for example one point five and you missed the calculation of future value for investor and individual investor ROI and individual investors IRR the color quotient in the model is very simple you may change any yellow cell in any yellow sheet within the model this means that this yellow cell has some input assumption or driver which imparts the calculation within the model blue sheets means that on these sheets there are some charts reports and other information which can be useful for reporting purposes on the tabs without color you have some extra calculations related to revenue to depth equity inventory a narration which is needed for the report reporting additionally you have contents tab which allow you to navigate across the model very simple so you may click on any report and you can go back it is broken down by reports assumptions statements and setup there is short explanation about what each tab does but if you want to know more you can go to how-to and to see more detail acts detailed explanation on what each dot does and what inputs you will find on this sheet and what kind of outputs and we find on the condition as well any header of this section is also clickable so you may click on for example Boca sets and you go directly to the step on the input step you may input your mate pricing and billet inputs to drive a revenue show your pad works just of all you have regular price per month which is broken down by three main revenue streams by default displace medium and enterprise the names you can easily change on the dashboard and each offering is broken down by monthly payment cycle and annual payment cycle so for both of these payment cycles you should include the monthly coolant of your regular price let's pretend for the base disease $50 she won the next year 52 53 54 and see like that for the annual payment cycle let's say it's bochi bochi 1 to 2 2 to 3 44 each yellow cell you have the node what you are supposed to input here's is just easier for YouTube to import and to understand what you what you supposed to input here so based on the difference of monthly and annual payment cycle pricing you may see the annual payment discount in here the next step is to input up cell if you need it let's pretend that 10% of customers will pay you additional $10 per contract this means that your upsell will be additional $1 per month for example for this monthly payment cycle how it works the $50 plus 10% of the $10 which is $1 and you can look in price per contract $51 52 53 54 55 if you need more for example 15 to add additional $5 per month of up sale call the years if you don't need that sale you can just clean these cells and that's it for the annual payment cycle your booking is multiplied by 12 40 multiplied by 12 is 480 additionally you are able to input the revenue terms which is revenue payment delay which will drive the account receivable part in your balance sheet here so you have here the drop down stop from zero to 12 months of primary delay if you don't need any revenue delay just include zero additionally you can input the setup fee or one-time revenue per new customer to set up his account if you don't need that you can just input zero if you need you can keep it or adjust it with input 250 dollars separately you are able to input transactional revenue for all three offerings so first of all you need to input count of transactions per active customer per month example 15 17 19 21 23 and the price per transaction as $5 across all the years if you don't need any transactional revenue in your model you can just clean this for all the offerings or key only for one specific operate like this hope that make sense [Music] on the customer one would tap you can input customers churn assumptions and customer movement assumptions so let's start from churn rates so I'm here you can input your churn rates broken down by payment cycles and broken down by offerings please note that you input monthly sure so for monthly payment cycle if you input five percent this will be 5 percent per month but if you input 5 percent for annual payment cycle it will convert to the annual charm which is 45.96 percent of charm so the same way you can input for medium and pro also broken down by years and working down by monthly payment cycle an annual payment cycle and additionally you have customer movement setup which work in the next way so each month you can convert from base to medium 5 percent of customers or from medium to pro 10 percent of customers if you don't need that customer room what you can just clean this table and you will not have any migration between plans if you need to save these plans you can just adjust these numbers 1% 2% 3% 4% whatever statistic you have about your business and that will work additionally on the bottom you have customer movement chart which will show you the new customers turn customers and active customers based on churn rates customer roommate rates and visitors and funnel metrics which you set up previously on the dashboard [Music] and the cost of services sold tab you can input up to five nine items with the calculation costly services so here you have five placeholders let's say what the placeholder one can be question cost also you have up to five different categories how you would like to forecast your cost of services salt first two line items is reserved for the calculation with the percentage of total revenue another one as a percentage of subscription revenue one more as a percentage of transactional revenue and the last one is used for the calculation of cost of cirrhosis salt is a percentage of citta private so let me show you how it works on the top you have the basis of calculation which is total revenue at the breakdown subscription revenue a directional revenue enterprise we just set up question cost and we chosen the basis as a percentage of total revenue so by years we can input this amount 10 percent 12 13 14 and 15 so below you may see the calculation of this by night is by manses finally in income statement tab and the total cost section you may find all the five line items and the amounts by masses [Music] when the variable expands a step you can input up to 15 line items of your variable expenses so please note that you can input only in yellow cells so first 14 sets are changeable and the last one is already predefined it which is customer acquisition cost which input previously in the dashboard so for this customer acquisition cost to have amounts without any need to input any assumptions all other categories are broken down by three categories as a percentage of total revenue basis as dollars per active customer and as dollars per new customer so on the top you have three bases for the calculation of variable expenses categories total revenue amount active customers and new customers broken down by months so now you can input the names of categories for example utilities so you can input a percentage of revenue two percent three or five five and half by years below you may see the calculation of this by night and by month and additionally in the same way you can input your variable expense is $1 per active customer five or six seven eight and the dollar per new customer one two three four five we have also notes for each of the type for this variable expenses this some explanation of what you are supposed to input in this cell and as the summary in income statement you may find a section of variable expenses and you may see all the utilization of variable expenses my night items and digitalization by masses [Music] on the wages step you can input your head combo categories this fire Empire date is annual salary is ability to input different number of employees by years this annual salary rise percentage is monthly bonus tax rate let me give you a couple of examples let it be CEO you're going to hire in March 20 they're not going to fire him so the fire date will be December 24 so annual salary can be $50,000 and you see the one CEO over the time so you may see one CEO which is one could count starting from March to the end of the model which is December 24 also you can input 5 percentage seller growth rate you may see the amounts by years connected to this annual salary and bucked bicentennial cellular eyes let's set up 10 percent monthly bonus and 5 percent of tax rate so you may see below the calculation of salary broken down by manses monthly bonus which is 10 percent and 5 percent of monthly tech taxes related to the payroll another option to be admin account which will start April which will go to the end of the model with Sileo so $2,000 let it be here number one two four six eight and ten head counts super-sensitive annual salary rose five percentage of monthly bonus and five percentage payroll tax rate so in here let me see total stuff numbers which is 220 our number one twenty twenty started from year 2021 we have four six eight and ten the last year of the model again calculation of salaries for this too in this case for it counts population of bonuses and calculation of monthly base taxes we see an income statement lot of salaries and wages and here you may see the total amount of bonuses payroll taxes and wages for this it comes [Music] on the fix it expends a step if we input up to 15 line items for your fix-it expenses let me show you how it works for example we have utilities you will start pay starting from March 20 till the end of the model which is December 24 let me see it here let's pretend periodicity will be daily with the amount of $50 per day so you may see this amount here this calculated based on count of days within this month so obviously March 20 you have city 1 days that's why we will have featured hundreds and 50 in April you have 30 days this means this will be featured hundreds dollars also you have ability to input some growth rate year over year once you input this growth rate you will see that your utilities will grow or year over year let me give you a couple of other expenses types for example advertising let it start in March and finish in August 24 this will be on weekly basis with amount of $100 without any gross so start starting from March till August 24 you have four hundred dollars per month which is four weekly payments each month and that's it another option is be weekly for example five hundred dollars you can start from July for example and you'll have two payments which is to be weekly payments within two months five hundred dollars multiply it by two you have $1,000 per month again you can input some prostrate and you will see that your advertising expenses will grow here all year till the August 24 which is a last date of this expense type another option off is set up which can be one-time payment which will happen in February 20 is the amount of $5,000 obviously you should not input a Negro straits because this is just one-time fee and you me see that office setup will happen in February 20 is this amount another option insurance let it be start from genu 20 till the end of the model and it can happen monthly with $1,000 per month is five percentage of gross first year three percentage of gross second year two percentage of gross short and one percentage year number four so let me see this calculation here starting from January 21 it will grow 5% which is $50 and starting from January 22 it will grow for 3% which is additionally $32 another option quarterly you may see that insurance will be paid $1,000 each quarter you can start it for example from February and this will be shifted to one month forward another option semi-annually in this case you have insurance payments once for half a year again with the percentage growth and the last option is annual payments or yearly payments you'll pay one time for 12 months starting from February to December 24 for each expense type you can use growth rate and the calculation you may see in here also in income statement you may find total fixed expenses group if you will ungroup this section you can see these mounds broken down by manses and by fix-it expenses line items [Music] on the assets tab you may include up to seven and sets line items and change this ingly for example of the line item number one of these expenses you can set up the launch date for this asset type to much 20 you can input useful time ears and say it's one year and the asset cost for example fifty thousand dollars so you may see in the calculation do own capital expenditure which is a marched way mister the calculation of depreciation for one year ing to the beautiful time if you accept two years for example you will see that to be amortized at hooli for February twenty two which is two years from March 20 and you can see the claws in network value of this asset additionally you can input up to six other assets line items so in income statement we will find the depreciation and amortisation or each month the cash flow image CD fixes as capital expenditure and on the balance sheet you may see the total posit net book value produce in essence also on the top of the dashboard have that's assumptions let me show you how it works so for the each depth you are able to select the depth type there are two depth types in the model which is energy and usual energy means that each monthly payment which consists your debt repayment plus interest expenses will be equal each month in case if you will select usual your my debt repayments will be equal parts and interest will be just interest on the depths close and balanced let me give you an example how it works so you might input an amount of the depth the launch date term will be 60 ounces and interest can be 5% you may also input the grant which is just simple amount just paid in some specific months and that's it no repayments no charms in terms of interest so all the calculations of the depths when we see on the capital tab calculations for the depth number one tip number two step number three total depths you need with grants these calculations in parts income statements interest expenses the cash flow interest rate tab drawdowns debt repayments and on the balance sheet we have the depth closing balance [Music] in the cap table you can input the main cap table assumptions for finding angel seat in series a rounds C sub summary and calculations and reports so let's begin from the founders information on the top left side you can input up to three founders and up to five categories of employees you can set the names you can input here also common stock and come on options so you can input some amount for example pipe find it options for employee number one you're also able to input initiating play stock options plan if it's needed if it's not needed you can keep it as zero by default the result in you may see the total outstanding stocks and options and resolution across all these shareholders the next step will show you the assumptions for angel round so you can input employee stock options increase on prayer finding for example six hundreds you can set date of clause which can be April twenty for example you can set a pre-money valuation which can be some amount five hundred thousands we have up to five angel investor or investor groups you can input some amount of margin below you missing the calculation of shares prior to angel round average share price the sum of angel investment and post-money valuation based on the primary valuation and equity round exactly the same structure for the seed round and the four series around below you may see some summary charts and tabs so here you can see the shareholders which is founders employees and new options pool working down buy shares and delusion additionally have angel investors for the next step to the right seed investors and serious investors below you may see more detailed cap table calculation based on the names of founders employees and angels again you have common stock common options total outstanding the Ellucian percentages across these shareholders in the in the next step to the right you can see the angel investment amounts count of shares and the delusion after angel round seed round and serious air out additional you have options tab where you can see the capitalization table summary on the top you can see the capitalization table new options which is angel seat in series a and you can input the capitalization for new issuance of options for example finder one can have in seed round and other 600 options employee one can have serious a and 300 options the summer you have three reporting tabs which can be printed this is kept table print digitalization of finding angel seat in serious around more detail it angel cap table around which is summary of cap table for angel after angel and the breakdown of investors by investor names delusion on stayin and common percentage the same structure has seed cap table it has founder cap table angel investment in city investment utilisation and on the top you can see the summary of cap table after angel and after seat find him [Music] also on the top of the dashboard you can set the corporate tax rate which works for your country for example it can be searched a percent and you may see the calculation of corporate tax in income statement and the light tax expense on the cash flow you may see the corporate tax paid by default this is December and on the balance sheet you may see the corporate tax payable by months [Music] on the top of the dashboard you have currency denomination and taxes the top so currency inputs means that you can input all your drivers for the model using one currency you have currency outputs it can be the same as currency inputs and it can be different from currency inputs so let me give an example and the input in the United States dollars you have euro as an output and for this case you can set up currency exchange rate this is one point two for example in this case you will have in the model all your inputs in the United States dollars all your outputs in euros and there will be a conversion rate between currency inputs and currency outputs additionally you have denomination which means that you can de nominate all your outputs on the reports this example we have denomination is one thousand means that your output is denominated by one thousand you can select Millions you may see now it is in million dollars you can set also billions or without any denomination additionally you have corporate tax setup change this number and this will impart tax expenses and your income statement I hope you enjoyed my video thanks for reviewing this you can find more on my website in models lab calm and we'll see you later in the next videos [Music]