Justification of income and expenses in the financial plan of a business project

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Initial data


Theoretical foundations of planning enterprise income and expenses

The nature and types of income and expenses of the enterprise

1. Factors affecting income and expenses

1. Review of modern methods of planning income and expenses

One of the elements of financial planning in the organization is the plan of income and expenses, which is one of the last. It is necessary to calculate the profitability or loss ratio of an enterprise. Without drawing up the specified document, it is impossible to calculate the effectiveness of the project.

What is an Income and Expenditure Plan and why is it needed?

An income and expenditure plan is a document that reflects all projected cash flows from various sources and all costs of the firm. It is compiled for the following purposes:

  • Analysis of the financial condition of the enterprise;
  • Monitoring the efficiency of resource use;
  • Developing the capacity of the organization;
  • Ensuring financial sustainability;
  • Revealing reserves;
  • Finding options for the most optimal use of resources.

It is compiled on a quarterly basis, adjusted for the projected inflation rate. For compilation, indicators are calculated, which will be discussed below.

If there are inconsistencies between the actual values ​​and the predicted ones, the heads of the specialized departments can quickly see this and adjust the current policy. In practice, both a general document and a breakdown by functional area are drawn up.

Structure of the plan of income and expenses

It consists of the following sections

  • Revenue plan, which consists of:
  • Revenue volume excluding value added tax as the product of price and quantity of products sold - B;
  • Accumulated reserves;
  • Other receipts (DP):
  • from the issue of securities;
  • Rent;
  • Royalties;
  • Settlement of obligations;
  • From investing in various instruments and other income from various sources.
  • A cost plan, which includes:
  • Variable costs, that is, those that depend on the volume produced - PR and fixed, the amount of which is not affected by the volume of production - PSZ;
  • Other deductions (Rp):
  • Repair work;
  • Obligatory payments to budgets of different levels of the budget system and extra-budgetary funds;
  • Interest payments and principal repayment of loans;
  • Losses from marriage, compensation for damage;
  • Rent;
  • Purchase of new equipment, technologies, reconstruction of buildings;
  • Savings;
  • Payment of salaries, bonuses, bonuses, corporate events;
  • Charity, etc. / li >
  • Calculation of the following indicators:
  • Gross profit, calculated according to the formula Пв = В-ПЗ;
  • Net receipts from the sale of Pr as the difference between Pv and PSZ;
  • Profit subject to taxation - Mon;
  • Net profit (Pch) = Mon-N. It can be distributed to various enterprise funds, to pay interest to owners, etc.
  • Calculation of taxes taking into account the current rate N = Mon * Tax rate
  • Indicators of investment activity. Investments both in the considered company and those made by it with indication of sources, level of profitability, payback period.
  • Results, revealed:
  • Lack of working capital to pay off existing liabilities;
  • Retained earnings.
  • Be aware of the principle of balance and avoid uncovered costs or retained earnings.

Thus, in this document it is necessary to take into account all future cash flows within the organization and keep their balance.

Stages of drawing up a plan of income and expenses

The activities of any commercial organization are aimed at building material prospects in the future based on sustainable profits at the moment. However, in order to determine the amount of acceptable finance for the development of the company's spheres, it is necessary to clearly understand the importance of planning expenses and the amount of profit, actual or in the future.

Planning income and expenses: a necessity

During the period of individual activity, each business forms a system of monetary relationships between structures, relationships with customers, partners and founders. On the basis of these relationships, finance forms such concepts as profitability and costs of the enterprise. In turn, this influence forms the concept of profitability and profitability of the activities carried out.

The relevance of planning the income and expenses of the enterprise is explained by an indirect or direct linking point, which depends on the financial performance of the enterprise. The higher the turnover - the higher the profit, the higher the profit - the more there are prospects for the enterprise. Due to the profitability of the business, work can be carried out to expand the activities of the company, increase its production volumes.

Sustainable revenue generation provides more opportunities for waste planning in the enterprise.

The purpose of enterprise cost planning is to reveal the importance of this area for a company that seeks not only to carry out work in the same volume, but also to increase productivity. In a business environment, based on the planned expense and income, you can solve a number of problems:

  • definition of types of income, expense, their sources;
  • definition of a segment that affects the amount of income and waste;
  • calculation of methods, which are most effective for a particular business.

In simple terms, the definition of such quantities as income and expense helps to understand not only the essence of the appearance of such numbers, but also to identify the productive aspects of doing business. This control of finances helps management determine the efficiency and profitability of the entire enterprise or its individual industry.

Production cost planning: why is it needed?

Cost accounting and planning is the control of planned finances that can reduce the economic benefit of the enterprise. In turn, waste can be roughly divided into the following subcategories.

Company's operating expenses (direct)

In simple words, direct waste is an integral part in the production process of any enterprise that provides services or manufactures specific products. At the same time, as a rule, waste is in the nature of an advance investment, and profit making is slightly pushed back.

An example is the activity of a plant for the production of metal structures. Initially, the company plans to purchase material so that in the future it will be possible to sell finished products. Such waste is called natural current waste and does not affect the profitability of the entire industry.

The financial plan in the business plan is responsible for planning the cash flow in the course of doing business. The success of the business largely depends on how competently and realistic the financial part is. Read about this in our article.

What is the financial part of a business plan

The financial plan in the business plan is the part of the business plan that is responsible for financially supporting the remaining sections. The financial plan determines what funds will be used to implement each of the points of the business plan.

The purpose of a financial plan in business planning is to calculate such a positive balance between income and expenses, at which it will be advisable to conduct this business.

See also: Business plan: how to make it yourself

Structure of the financial section of the business plan

Each component of the structure serves an ultimate purpose. If at least one is not worked out, proportionality will be violated, and the entire financial plan will be impracticable. It is appropriate to calculate the financial part of the new business for 2-3 years in advance.

Sales forecast

When drawing up a business plan, it is imperative to think over what niche the new company will occupy. Better yet, prepare the ground in advance: verbally agree with potential partners, conclude an agreement with clients or start leading a group on VKontakte / Instagram, interview consumers in thematic groups.

Evaluating profit and loss

This item consists of the following indicators:

  • sales revenue;
  • production costs;
  • total profit;
  • general production expenses;
  • net profit (minus costs).

In this part of the financial plan, the main thing is to reflect how the profit will change and for how long.

Every owner of a small or large company wants to know how profitable his business is, what is the real financial condition of the company at one time or another, what income / expenses should be expected in the future, how much money is required to invest to increase profitability activities.

For a better understanding, the scheme of formation of the BDR will help us.

The process of BDR formation, as we can see, is multi-stage. Within the framework of this article, we will consider only the main ones, those that usually raise the most questions.

Stage Calculate costs

We begin to form the BDR with cost planning. I advise you to do this according to the "bottom-up" scheme with constant feedback.

According to it, the calculation of projected costs begins at the level of departments, after which the finished figures with their justification are sent to the financial manager, where they are distributed according to the articles of the section "Expenses".

This part includes:

The draft of the expenditure side is prepared by the accounting department of the company on the basis of statistical information for the previous period. Then it is transferred to the approval of the head of the Central Federal District (center of financial responsibility) to make proposals for additional costs that may arise in the planning period.

In the approved BRD, costs can be adjusted at the request of the Central Federal District. Typically, the centers submit such applications once a quarter. Cost increases must be justified. If the growth in costs exceeds the limit established in the company for these purposes (as a rule, 10-15% of the plan), then coordination with the chief accountant and the general director will be required.

Stage Calculate income

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