The LivePlan Method: Model & Build Phase Follow

 

Basic instructions for this step:

 

Step 4.02: Adjust direct costs using gross margin target(s)

The starting direct costs, or COGS, should be tied directly to specific revenue streams whenever possible. This video shows you how to do that:

 

Basic instructions for this step:

 

Step 4.03: Enter employee labor in Personnel

In this step, you'll create forecast entries on the Personnel page, so that LivePlan can compare them against your labor actuals in the Dashboard. This video explains:

 

Basic instructions for this step:

 

Step 4.04: Adjust expenses using established ratios

This step involves working with the overhead expenses that have been imported from the chart of accounts. This video has more details:

 

Basic instructions for this step:

 

Step 4.05: Enter Assets

LivePlan places pre-existing assets your client already owns in a different part of the forecast than future assets your client plans to acquire. This video explains:

 

Basic instructions for this step:

 

Step 4.06: Enter Dividends

If your client wants to forecast payments back to investors, use the Dividends entry to schedule these. For more details, please see this article:

 

Step 4.07: Enter estimated rate for corporate & sales taxes 

LivePlan calculates income and sales taxes as flat percentages - remember, forecasting is different than accounting, so these simple calculations are fine for forecasting. To set the projected tax percentages and payment schedules, please see this article:

 

Step 4.08: Set Cash Assumptions (AR & AP Days)

In the Cash Flow Assumptions page of the forecast, you'll set up the basis for future Accounts Receivable and Payable, along with future inventory. This video shows you how:

 

Basic instructions for this step:

 

Step 4.09: Enter any Financing Needs based on the forecast

In this step, you'll not only be entering future financing you and your client decide to add to the forecast, you'll also represent any existing financing your client has as of the start of the forecast. The video below covers loans, investments, and lines of credit:

 

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Step 4.10: Confirm automated Starting Balances

The Starting Balances field of LivePlan has been auto-populated with your clients assets, certain liabilities, and equity as of the forecast start date. We touched on the starting balances in the Assets step. In the Financing step, you also added any pre-existing financing to these starting balances.

In this step, you'll review the starting numbers to make sure they accurately reflect the business as of the start of the future forecast. This article will help you with this step:

 

Step 4.11: Finalize Mapping

Now that you've made some changes to the forecast, it's important to revisit the mapping page of the Dashboard tab, and update the mapping between LivePlan and the client's accounting solution. The articles below explain how to do this in detail.

Basic instructions for this step:

 

General resources for forecasting:

  

Sharing the forecast with your client

You can share the completed forecast with your client in several ways:

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