Description

Consulting Business Excel Financial Model

A Consulting Business Start-up Excel Financial Model used for evaluation of the current and future finances of a Consultation Company. An ideal model helps decipher the level of finance your business needs while also predicting business operations’ viability. Coming up with a good business idea and having the skills to run it are one thing, but managing its finances and acquiring another thing. When creating a financial plan, it is common to meet with a finance professional in order to calculate future profits, returns, and assets, among other things. This model makes it easy to develop your financial charts by entering your expected monthly and yearly revenues. This Consulting Business Excel Financial Model will organize every expense of your business operations and provide you with a clear financial statement.

Similar Business Models

Deloitte, PWC, KPMG, L.E.K Consulting

Introduction to Consulting Business Excel Financial Model 

The Consulting Business Excel Financial Model contains the three financial statements, including the cash flows and calculates the relevant metrics (Break-even Analysis, Diagnostic Tools, Project evaluation, and Charts). The financing options for the project include a standard long-term loan, an investment made by the investors, and of course, revenue analysis.

So a quick overview of the Financial Model, in the contents tab, you can see the structure of the model and, by clicking on any of the headlines, be redirected to the relevant worksheet.

How It Works

On the Input tab, you can feed the financial information for the model, such as sales price, cost, expenses, etc. Inputs are always depicted with a Peach fill and grey letters, calls up (direct links from other cells) are filled in grey with black letters, while calculations are depicted with white fill and black characters.

In the break-even analysis tab, you can see the items needed to be sold every day and their currency value to break even.

Calculations: Here, all calculations are performed The revenues are calculated based on the product or services sold, promotion, pricing, promotions, and marketing campaign, and deducting the business variable and fixed costs, the operating profit is resulting. The interest and depreciation will be calculated based on the assets financed and the gearing of the financing. With the help of working capital assumptions, we have measured the impact on business cycles. In the last, depending on the level of the investment, the relevant debt financing is calculated.

In the PnL Monthly tab: everything aggregates here into the relevant statements: profit and loss, balance sheet, and cash flow every month.

Moving to the Project Valuation tab, a company valuation is performed by using the free cash flows with discount rates to the firm, and then a series of investment metrics are presented (IRR, NPV, ROE).

In the Dashboard tab: Various graphs present the revenues, cash analysis, break-even analysis, sensitivity, assets vs. liabilities, startup summary, etc.

Key Inputs of Consulting Business Excel Financial Model 

1. The growth rate, Price and Expense.
2. Revenue Assumptions.
3. Average Payable and Receivable days your business is following.
4. Cost of Services.
5. Fixed Asset and Capital Expenditure.
6. Tax Rate
7. Investment table
8. Loan table

Key Features of Consulting Business Excel Financial Model Template

Input Sheet

This financial model template contains inputs that, when changed, impact the calculations, and, therefore, the changes are applied to all relevant sheets. This financial model always has built-in flexibility to display different outcomes or final calculations based on this sheet’s changes.

Startup Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash has been injected by the company so far, and based on the number of months, the amount of investment required is calculated.

A Startup Summary helps you take a realistic view of your idea and double-check whether it’s the business has enough funds to support operations.

Monthly & Yearly Income Statement

The Consulting Business Excel Financial Model provides the monthly and yearly income statement structure and a framework for creating a full corporate forecasting model tailored to your business.

A key feature of the Consulting Business Excel Financial Model is that it is “integrated,” which simply means that the Income Statement is modeled to accurately capture the connection and inter-linkages of the various line business items. An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement in order to see how it impacts all other parts of the statements accurately and consistently.

The Consulting Business Excel Financial Model’s monthly Income Statement sheet is perfect for those requiring regular reporting and details. Additionally, the Income Statement contains all revenue streamlines with gross and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands every business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits or otherwise.

Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses. The Yearly Income Statement also contains several graphs, assumptions, ratios, margins, net profit, earnings, cost of services, and profit after tax.

 Balance Sheet

This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. This also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore, this specific financial model gives you the perfect space to analyze your key financial balance accounts.

Cash Flow

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements bridge the income statement and balance sheet by how money has moved in and out of business.

Three main sections of the Cash flow Statement:

1. Operating Activities: We have included all cash in and out related to the operations of the business
2. Investing Activities: Cash from the disposal or acquisition of an will include in this section.
3. Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information thee. The tab is linked to the Financing Activities of Cash flow Statement.

The Cashflow Statement in our Model contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement is based on several key inputs, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow and beginning and end cash balances. This is a perfect template for your company’s cash flow management.

Break-Even Analysis

A break-even analysis can help you measure how different scenarios might play out financially. For example, if you increase the marketing budget or add another employee to the payroll, how many extra sales will be needed to recover that additional expense?

We have included a Break-even analysis in our Financial Model to help the user determine sales. The break-even analysis will help you know at a glance, the profits generated at the various sales levels. The Break-Even Analysis is the point where your total sales contribution refers to fixed cost at zero profit and loss. This Technique is primarily based on marginal costing, which behaves differently at various levels of output activity.

Project Evaluation

Since the table calculates Return on Investment, Investor’s Future Equity Share, and Cash Burn Rate Analysis, analyzing the company’s performance becomes easy to capture potential investors.

Diagnostic Sheet

This Diagnostic sheet is a new inclusion to our financial model. This automatically explains the condition of the business. For example, if your company’s profit is 30% of the total sales. The sheet will include favorable comments (As mentioned above in the picture). The comments automatically connected to the numbers of financial data in the income statement, balance sheet, and Cash flow. The Diagnostic Sheet is very helpful in giving the company’s insights in just one line.

 Dashboard

Users and readers respond and process visual graphs better than data. Furthermore, This dashboard provides you with a graphical management tool that enables you to track all your relevant financial KPIs, improve cash flow management, and track expenses, sales, and net revenue in detail to meet and outperform the financial objectives of your business.

Benefits of Consulting Business Excel  Financial Model Template

Encapsulate Company Performance- The Consulting Business Excel Financial Model analysis simplifies a company’s financial statements. It allows the user to express critical profitability and financial position information in just a few numbers. For example, the company’s net profit margin encapsulates the net effect on a revenues and all expenses. It will enable the user to conclude a company’s profitability without going through lengthy account statements.

Bottom Line – Consulting Business Excel’s financial model can be the key to your company’s better and informed future. Succeeding in planning your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, controlling costs, and determining company valuation.

Accommodates Investors – This model provides valuation and performance analysis charts. It enables the investors and banks to clearly determine the company’s actual worth considering lending funds to your company.

Based on Financial Principles – We researched a Club business model in-depth. So this financial model was created with logically correct financial and economic principles and assumptions.

Properly Integrated – The model assumptions and calculations are structurally integrated. So the change in the main sheet will automatically lead to the change in all related sheets easily.

Visualization Tool – This Financial model also prepares a clear communication of the quantitative outcomes. As obtained by calculations via various graphs and charts. Therefore, the user does not need to pay much attention to the financial model’s inner workings.

This Product Includes 1 Excel File

Walk-Through Video of Consulting Business Excel Financial Model

The following video will give you an overview of the different sections of the financial model and will help you understand it’s working.