- Original Poster
- #1
Hello everyone,
I have a few quick questions regarding financial statements that go into a business plan for a start-up company. I would be grateful for any advice. I am currently a teacher new to this area, and have some questions.
If being asked to create three financial statements (a 3 year forecast for Profit and loss account, a forecast for start-up costs and a break-even analysis):
1) Do start-up costs feed into the profit and loss account, or are they completely seperate? For example, opening inventory may be listed as a start-up cost - would this be included as a fixed cost in year 1 in the profit and loss account.
2) The figures from the profit and loss account (e.g. fixed costs) feed into the break-even analysis. For a start-up company, is it safe to say that you will use the year 1 forecasted figures from the P&L account to calculate the break even sales figure. Or is it safer for start-ups to use a narrower set of P&L figures - e.g. from the 6 month stage. I hope that makes sense.
Thanks!
I have a few quick questions regarding financial statements that go into a business plan for a start-up company. I would be grateful for any advice. I am currently a teacher new to this area, and have some questions.
If being asked to create three financial statements (a 3 year forecast for Profit and loss account, a forecast for start-up costs and a break-even analysis):
1) Do start-up costs feed into the profit and loss account, or are they completely seperate? For example, opening inventory may be listed as a start-up cost - would this be included as a fixed cost in year 1 in the profit and loss account.
2) The figures from the profit and loss account (e.g. fixed costs) feed into the break-even analysis. For a start-up company, is it safe to say that you will use the year 1 forecasted figures from the P&L account to calculate the break even sales figure. Or is it safer for start-ups to use a narrower set of P&L figures - e.g. from the 6 month stage. I hope that makes sense.
Thanks!
