Beginning balance sheet (for a start-up)

If you have purchased any inventory on credit on the date of the beginning balance, enter the amount of the inventory on credit under Current Assets > Stock/Inventory (any inventory paid in cash is also entered here), and enter the same amount under Current Liabilities > Suppliers' Credit. If you have purchased fixed assets, enter them in the Investment Budget under Start-up Investments before Operations. Any fixed assets to be purchased must be entered in the Investment Budget (if not regarded as an expense). If the investment (such as a lamp, PC speaker set) can be accounted for as an expense, enter it in the Income Statement in the first month or later, as is needed.

The Cash/Bank cell

This cell is automated! Any difference between Assets and Liabilities will result in a positive (which is fine) or negative cash/bank balance. A negative amount means you have more assets than your financing allows. Consider adding more equity or other means of financing the assets.

Start-up costs

Any start-up expenses entered in the Investment Budget to be considered expendable are inserted as a Current Asset in the Beginning balance sheet. This is necessary to ensure you properly finance all assets. In addition you will pay these expenses in the first month of operations in the Income Statement under Total Operating Expenses. See the Investment Budget for more details.

Beginning and historic balance sheet (for an existing business)

The beginning balance (which is the first column) for an existing business should include the data of your most recent balance sheet plus any additional amounts you want to include before the starting of the financial projection. The values entered in the two Historic columns are not used in other parts of the workbook.