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Hardware bill format for Planning

[Music] [Applause] hi my name is grace Cissna I'm the CPA on staff at projection hub and today I wanted to take a little time to walk you through our hardware and software is a service model template this template is very similar to the rest of the excel templates we sell at projection hub and that it begins with several input tabs colored in this light blue color here and on the input tabs you will find the cells in this same light blue color where that directly to where you need to enter data to build your own Excel model after these light blue tabs we have several green tabs to our output tabs showing you your pro forma financial statements which are completely built by the model based on the inputs that you choose in addition to the financial statement outputs we also have what we call an investor dashboard which I'll talk about a little bit at the end of this video so to start I want to dive into our input assumptions tab just another note as we're looking at this tab you'll see this need help button at the top of all of our input tabs and once you download this this model if you have questions if you need help filling it out or maybe it works for you except for you need slight modifications please contact us I've developed all these templates myself and it's often really easy for me to make modifications for you so if you need another revenue line or something just isn't quite working please contact us as support of projection hub comm and we can get this template modified to fit your business for you so on the input assumptions tab we collect some basic assumptions as well as most of your balance sheet assumptions so this means your company name projection start date we collect information about investments and windows happen your accounts receivable as well as AR terms or sorry inventory terms we collect information about your fixed assets in order to calculate both the fixed assets and depreciation expense and then we also collect information about any loans you have to put on the balance sheet as well as calculate our interest expense for the income statement the next tab is the input revenue and cost of goods sold tab and this is the big tab and pretty much all of our templates where most of the hard work happens so at the very top of this tab we're going to website visitors assuming you're doing most of your selling through a website and once website visitors have been calculated we dive into hardware sales so this model works really well I think a lot about home security system with the subscription that goes along with it or some other some other item that has a hardware component and a software component to support that hardware component for years afterwards and so that's what we had in mind when we thought through this template and so we dive right into hardware sales and we determine the number of website visitors that are making a purchase of hardware we even talked about upgrading hardware there are a certain number of years and then we enable you to show your product mix for different types of hardware so you've got different package options different Hardware options you can put those in here with your price as well as your cost for those Hardware items and select the sort of product mix for each of five years and that is going to show us your average order value the average number of items sold per customer as well as your cost of goods sold percentage or just that counter part of your gross margin percentage from there we calculate out your revenue from new customers as well as revenue from existing customers so that revenue from existing customers comes from customers upgrading their hardware and then we also look at the cost of goods sold for that hardware once you've sold customers the hardware they're going to need the subscription component to support the hardware so we calculate our revenue from that subscription below we look at the average length of a customer relationship the different subscriptions levels that you might have you can again sort of do a product mix here so determining which customers are subscribing at which levels during which year and that will give us an average monthly spend customer in addition to the the spender per customer there might be some sort of support fee for every customer you wanted to work in those direct costs so if there's any direct costs associated with the subscription you can put them in here and the model is going to calculate out for you those direct expenses as you can see here at calculate subscription revenue and subscription direct costs we also wanted to include a line for any other recurring revenue that you might have this is open to interpretation whatever works for your business just really simple and turn em out and it grows over time and there could be any sort of direct expense associated with that as well so then the model calculates out all of your revenue and direct expenses and shifts those off to the financial statements and you don't have to do anything else with that once you filled out your revenue and costs of sales tab we move on to other expenses and these are all your operating expenses not including the cost of sales or salaries both of which are calculated on different tabs on this tab you can enter up to 19 or 20 different expenses there's two ways that you can calculate them either they can be calculated in a fixed way so essentially you're entering the amount per month as for advertising here you can see entering twenty thousand dollars per month the other option is using a percentage of revenue so our credit card fees right now are being calculated as two percent of total revenue because this box here we'd select a total revenue in the drop-down and then we're plugging in two percent in the decimal format point zero two which is important that it's in that decimal format I could also do credit card fees as a percentage of her by revenue or subscription revenue or other revenue so if you've got some sort of revenue driven expense it can have to be driven by your total revenue or one of your categories of revenue you can plug that in here and use the percentage one note if you do jump over to your income statement after you've filled out all the info tabs and see that one of your expenses looks really high come back to this tab and check and make sure that if you've used that percentage of revenue option for anything so if it's about anything other than fixed in this column here make sure it's got a point zero something you know our point one that format as opposed to like ten for ten percent so those it's gonna be multiplying it by a thousand percent if you get ten in there so that's a common error that we see in filling up the templates you also have an effective income tax rate on this tab note that these are all monthly amounts but we've broken out the first three months so you can get your startup expenses in there and then we let you enter just the yearly amount for the remainder of time to keep it really simple and easy to fill out next tab is the input salaries and owner drawers and this works inputting any salaried employees that you have in an owner draw is also dividends depending on how you want to phrase that so it'll show you cash at the end of the month and then you can enter your dividend amount or your owner draw if you choose to do that but the salaries portion here is pretty self explanatory note that you can enter duplicate employees or duplicate employees just by changing this number here so you don't have to enter each individual employee you can just plug in more than one so those are all of the input tabs for this so I'm going to jump over to our output tabs and show you a little bit what those look like so our first tab is the added glance tab and this has a lot of charts and graphs and ratios a lot of stuff that's really good to snip out and put into you a pitch deck and so we've made some pretty charts for you showing your expenses profit and loss of a glance breakeven chart here the next three tabs are our financial statement summary so it's showing the three pro forma financial statements of the ride the income same in the cash flow statement in the balance sheet and it's showing those at the end of each of five years so I'll just show you what those look like it's the balance sheet and the next three are the income statement cash flow statement and balance sheet for five years but now we're showing them in the monthly format so you get every single month for five years note these are in a format that's ready to give to a bank so you can see some of my numbers are a little large here let's double click to make those visible these are in a format ready to give to the bank or to an investor our balance sheets are always going to balance for you a lot of times if you try to build your own projections you're going to struggle to get that balance sheet balance it's just very time consuming we've been in all the time for you so all you have to do is fill out the information those input tabs and this is going to be balanced for you so you don't have to worry about all that sort of technical background calculations that these produce they're going to come out for you and really nice easy to read clean format so in addition to those output tabs I mentioned I would talk about the investor dashboards the investor dashboard is new to our version two templates which most of them have been updated at this point so with the investor dashboard enables you to do is it enables you to look at different scenarios by changing some of the major assumptions of the revenue model the revenue classic sales model and it allows you to look at an original income statement and a modified income statement so the modified and consume it is essentially scenario two if you want to change some of the major of assumptions of your revenue model you can change them in this box up here in the blue areas and that will show up on this modified income statement here without changing the rest of your model which is really nice if you've got a model that you like you can keep it all you don't have to change anything but you can play with some of the major assumptions to see how that's going to affect your income statement this is also great for investors and you put this in front of your investors so they can kind of see how sensitive the income statement is to some of these various assumptions so that is a brief walkthrough of our hardware and software as a service model excel template if you have any questions please contact us at support at projection dot projection hub comm hopefully we'll talk to you soon you