Description

Human Resource Software Financial Model

If you want to launch a Human Resource Software or want to expand your current software business. Therefore, you require the analysis of your all financial details to ensure the financial feasibility of your business. This Human Resource Software Financial model allows you to draft financial projections easily, fast, and in a professional manner. This template will also force you to think through all the aspects of your project and make sure you really get the financial logic behind your business.

Similar Business Model

Megaventory, Alfa POS, and EZRentOut.

Introduction to Human Resource Software Financial Model 

The Human Resource Software 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 as well as an investment made by the investors and of course marketing sheet (including automated inbound and outbound marketing costs sheet which also contains how many customers will achieve as a result).

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. These cells have a peach color and grey letter, Inputs will depict as a Peach fill and grey letters, call up (that is direct links from other cells) are filled in grey with black letters while calculations are depicted with white fill and black characters.

Another useful tab is the break-even analysis where 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. Based on the assets financed and the gearing of the financing the interest and depreciation will calculate. 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 will calculate.

In the P&L 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, start-up summary, etc.

Key Inputs of Human Resource Software Financial Model 

1. The growth rate Price and Expense.
2. Deals and Sales Allocation
3. Revenue Price Assumptions
4. Other Cost of Sales Assumptions
5. Salary & Personnel Plan Assumption
6. Marketing Budget Sheet (which measures how many customers we get from marketing).
7. Average Payable and Receivable days your business is following.
8. Cost of Goods.
9. Fixed Asset and Capital Expenditure.
10. Tax Rate
11. Investment table
12. Loan table

Key Features of Human Resource Software Financial Model 

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.

Start-up Summary

 

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

A Start-up 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 Human Resource Software Financial Model provides the monthly as well as yearly income statement structure and a framework for creating a full corporate forecasting model tailored to your particular business.

A key feature of the Human Resource Software  Financial Model is that it is “integrated,” which simply means that the Income Statement is modeled in a way that accurately captures 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 monthly Income Statement sheet of the Human Resource Software Financial Model is perfect for those who require regular reporting and details. Additionally, Income Statement contains all revenue streamlines with gross earnings, and net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands every School 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 act as a bridge between the income statement and balance sheet by how money has moved in and out of the 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 which will help the user to 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.

Marketing Budget Sheet

A marketing budget sheet was added with all possible marketing channels. The Sheet tells you how many expected customers you will have with different channels. For example, spending $2000 on Facebook marketing will bring 1,000 active customers. To make this more accurate the user has required to enter conversion rates from the internet.

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 will automatically connect to the numbers of financial data in the income statement, balance sheet, and Cash flow. The Diagnostic Sheet is beneficial to give 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 Human Resource Software  Financial Model Template

Encapsulate Company Performance- The Human Resource Software 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 of a company’s revenues and all expenses. It will enable the user to conclude a company’s profitability without going through lengthy account statements.

Bottom Line – A Human Resource Software financial model can be the key to your company’s better and informed future. Succeeding to plan 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 did in-depth research on a software business model. So this financial model was created with logically correct financial and economic principles and assumptions.

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.

Walk-Through Video of Human Resources Software Excel Financial Model

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

This Product Includes: 1 Excel File