Robust 3-Statement Financial Model: For Startups

I had to really dig deep into my old accounting knowledge and do quite a bit of research to get this model right. It is a fully functional and inter-connected excel template that has all 3 financial statements functioning on it. The purpose was to build something that fits 90% of cases. This is typically called a 3-statement financial model and commonly requested for startups by investors/creditors.



Pricing
The template will be sent to you after purchase.

***Update - I have added additional logic to account for the pre-paying of inventory. You can define the number of months you want to buy inventory for and the model will account for the cash flow effects of that. So, you can see what the cash flow effects are if you want to pay for inventory every 4 months or whatever the amount of months is that you want to use. This is really important for those that have a lot of moving parts. If the inventory is purchased just-in-time, you can simply put a '1' into the field that defines the number of months and if you don't have inventory than that is fine and the model will run fine with no inventory inputs.

Inventory Logic Upgrade:


The main reason I wanted to get a solid 3-statement model up here is that you can apply any of the financial models here at smarthelping to it by dropping in the revenues, expenses, and general assumptions. This is more of a formal way to report on the activities.

The other models have all of the relevant cash flow and operating logic needed to do advanced forecasts as well as visuals and really helpful executive summaries, but if you need to use the logic that exists in formal financial statements, this template will be what bridges that gap.

My goal was to add as much flexibility as possible but still make this a fairly quick thing to use. This is why I wanted to do schedules for fixed assets, valuation, debt, and investor funding and then you simply drop in the revenue and expense items that you have done in the forecasting models. The accumulated depreciation, depreciation expense, book value, and gains on sale of long-term assets will all be automated based on filling in a few assumptions about those items.

There is a lot of automation around capital gains taxes and income taxes, which was important for figuring out what was available to distribute to investors vs. what is kept as retained earnings and the resulting cash flow.

Some highlights of the model:
  • Monthly and annual view of each financial statement.
  • The automated clearing of data that is beyond the defined exit/end month of the model.
  • Add up to 7 different investors with different valuations/ownership shares/funding amounts/month of funding dates.
  • Up to 16 CapEx items including specific logic for the purchase and sale of a building.
  • Option for defining a valuation of the business based on an annual revenue multiple.
  • Option to split the proceeds received from the sale between extraordinary income and sale of fixed assets (outside of the sale of the building, which is accounted for separately).
  • Up to 4 different income streams.
  • Toggle to pay dividends or just accrue equity ownership.
  • See the effects of up to 1 long-term loan.
  • Automated financial statement labeling based on dates chosen on 'control' tab.
  • Min and max cash position.
I didn't include the effect of accounts receivable and payables because that would require too many logical changes and the goal here is to get something that fits 90% of cases at a general level.

This model is designed to explain the different primary line item connections of the 3 major financial statements and not for actual reporting. Actual reporting would require a lot of reconciliation work, starting and closing account balance entries, and be a completely different tool. This is just designed to be used for forecasting the business operations and cash flow therein based on thing happening in a common way.