Detail by Quarter – second and third year
We have looked into the fact that the financial statements should be made monthly for the first year. Now we take a look peek into another facet i.e. quarterly financial statements for the second and the third year. The core reasoning for quarterly detailing of financial expenses is the same. In this section, we will take a look as to how to go about doing this. We can use this patter for the monthly detailing for the first year too.
For the financial listing, you need to include various sections given below:
1. Income – This section includes all the income expected from the business and its different sources.
2. Cost of Goods – Also known as the cost price or the price of the manufacturer, cost of goods is the actual money invested in manufacturing and distribution of products.
3. Operating expenses – This includes all the labor and overhead expenses involved in production.
4. Expenses – The total of operating expenses and other expenses involved in maintain the business.
5. Gross Profit Margin – It is the difference between the revenue and cost of goods manufactured. Normally, it is treated as a percentage.
6. Net Profit – The difference between the gross profit margin and the expenses incurred.
7. Depreciation – It includes the decrease in the capital assets of the company.
8. Net profit before/after interest – If calculation has to be before interest, difference between depreciation and net profit is taken else difference between net profit before interest and interest is taken.
9. Taxes – Listing of various taxes that need to be cleared according to the laws of the state.
10. Profit After Taxes – The profit after taxes is the core profit of the company and more formally known as the ‘bottom line’.
You may disregard one or more of these facets under your quarterly/monthly financial statement depending on your business and needs.[button_with_link url="/100-point-business-plan/business-plan-outline-finances/first-year-financials-by-month/" target="_self" class="button-left"]<< Previous[/button_with_link] [button_with_link url="/100-point-business-plan/business-plan-outline-finances/assumptions-upon-which-financial-projections-are-based/" target="_self" class="button-right"]Next >>[/button_with_link]