Business 101: Cash Flow Forecasting For Retail Business | Chris Benjamin | Skillshare

Business 101: Cash Flow Forecasting For Retail Business

Chris Benjamin, Instructor, MBA and CFO

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17 Lessons (1h 31m)
    • 1. Course Introduction

      1:34
    • 2. Instructor Introduction

      1:23
    • 3. Excel Basics

      11:47
    • 4. Budgeting Introduction

      4:50
    • 5. Months and Incoming Cash Labels

      5:29
    • 6. Formatting Subtotals and Column Resize

      4:53
    • 7. Outgoing Cash

      5:25
    • 8. Outgoing Cash 2

      6:15
    • 9. Totals 1

      5:13
    • 10. Totals 2

      5:34
    • 11. Budgeting Basics and Sales Data Entry

      5:28
    • 12. Outgoing Cash Entry

      8:33
    • 13. Budget Analysis

      7:37
    • 14. Summary Tab Setup

      6:08
    • 15. Summary Tab Formulas

      5:46
    • 16. Summary Tab Analysis

      3:15
    • 17. Course Conclusion

      2:01

About This Class

Are You The Owner of a Retail Business?

Are You Thinking About Opening or Buying a Retail Store?

Do You Want To See Where The Cash Is Coming In and Going Out?

Do You Want To Be Able To Project Forward How Much Cash You'll Have?

Do You Want To Take Control Of The Cash Flow For Your Retail Business?

If You Answered "Yes" To Any Of The Above, Look No Further.  This Is The Course For You!

*** Updated June 2019 with new content! ***

Enroll today and join the 100,000+ successful students I have taught as a Top Rated instructor!

Three reasons to TAKE THIS COURSE right now:

  1. You get lifetime access to lectures, including all new lectures, assignments, quizzes and downloads

  2. You can ask me questions and see me respond to every single one of them thoroughly! 

  3. You will are being taught by a professional with a proven track record of success!

Recent Review:

Sam T. says "Great course for retail businesses.  I own a small clothing store and while I know we make money I never really knew how to actually figure out how much or how to plan.  This course answered both those questions for me.  Now I can make better business decisions.  Definitely recommend the course."

Why You Should Take This Course: 

Retail businesses often run very day to day, without much planning for the future.  As well cash flow is always an issue, making sure there is enough in the bank to pay suppliers, your staff, yourself, and more.  It can definitely be a struggle at times, and where the money has come in and gone to can be a bit of a mystery over time.  Take control and let it be a mystery no more!  Start planning, forecasting and budgeting today with this course. 

Become a cash flow budgeting and forecasting pro!

This course is 100% in Microsoft Excel, showing you from start to finish how to build a proper budget and forecast for your small business retail store.  We start with a blank Excel workbook, and will build the proper structure, formatting, formulas so that you can plan ahead for the future of your company, whether that is next week, month or the entire coming year.

You will be able to see where your money comes in, where it goes out and at the end of the day/month/year where you will stand.  This is most powerful if you compare what you are planning to what you actually achieve. 

As well I provide the template we build in the course for you to download! If you don't have the time or desire to build your own forecast, you can simply use the budget and forecast we build in the course and modify it to meet your needs.  

What We Do In The Course:  

  • Start with a blank Excel workbook which will become your budget and forecast

  • Build the proper structure for a budget and forecast

  • Format the spreadsheet so it is easy to read and follow

  • Place formulas in to calculate totals where appropriate

  • Create a summary tab to show overall totals

  • Show you how to track your actual results against the forecast and budget

  • Teach you how to then use that information to make informed decisions about your business

  • And Much More!!!

At any point if you have a question, please feel free to ask through the course forum, I'd be happy to answer any and all questions.  

***JOIN NOW AND LEARN PROPER CASH FLOW FORECASTING WITH ME! ***

About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 20 years experience in accounting, finance, financial reporting and small business, Excel budgeting and forecasting.  Having spent the first 10 years of my career in corporate settings with both large and small companies, I learned a lot about the accounting process, managing accounting departments, financial reporting, external reporting to board of directors and the Securities and Exchange Commission, and working with external auditors.  

The following 10+ years I decided to go into CFO Consulting, working with growing companies and bringing CFO level experience to companies.  I help implement proper best business practices in accounting and finance, consult on implementation of accounting systems, implementing accounting procedures, while also still fulfilling the CFO roll for many of my clients which includes financial reporting, auditing, working with investors, financial analysis and much more.  

Thank you for signing up for this course. I look forward to being your instructor for this course and many more!

Chris Benjamin, Instructor, CFO & MBA

Transcripts

1. Course Introduction: Hi, everyone. Thanks for signing up for the course. Cash flow forecasting and budgeting in excel for retail businesses. My name is Chris Benjamin N B. A CFO. And most importantly, I'm your instructor for this course. So what we're gonna be doing in this course of starting from scratch in a blank Excel workbook, we're gonna build you out a very nice just sort of 12 months statement of cash flows. Very simple, easy to follow method. But at the end of it, you're gonna feel a lot more empowered. You're really gonna be able to see where the money is coming in and where it's going out and you'll be able to make better decisions for your business. Now, if you're not expert in excel, that's okay. Don't even worry. As long as you have the program Excel, we're gonna teach you in one of the lectures the first ones how to do the basics that you're gonna need. So don't even worry. It's not difficult and as well. At the end of the course, I provide you with the template. So if you decide that you don't want to build your own, you just want to use the one that we build through the duration of the course. That's completely OK. And then you can tailor it a little bit. Defeat your fit, your business needs. That's that. I'm excited to get started. The course, basically is this introduction. I'm going to a short introduction to myself to tell you a little bit more about my background and why should be your instructor. And then we're gonna dive in the rest of the courses. All gonna be on the screen in Excel with me explaining what we're doing and you can follow along. I'm looking forward to being your instructor. If, during the course you have any questions, send me a message through the website. I'm happy to answer them. And then as well, at some point, if you get prompted for a review, I'm always happy to hear back what you think of the course. Go ahead, leave me your feedback. And if there's anything I can do better for you, definitely let me know. Let's go ahead and get started. 2. Instructor Introduction: everyone little introduction to myself and sort of my backgrounds. They have a better idea of who your instructor is again. My name is Chris Benjamin. I have an MBA from the university Washington. I work as a CFO and as well I'll be your instructor. So the last 20 years I've spent in accounting and finance, that's my background. The 1st 10 I spent in sort of corporate life, if you will. I work for corporations. I worked myself up the ladder to the CFO level. At some point, though, I really had a passion for working with entrepreneurs. So I left the corporate life. I went into consulting on my own, working with start up growth stage companies, implementing all the types of things the CFO would do for a company. And maybe they weren't at the place where they needed a full time CFL. What they certainly could use my help on a part time basis, and that's what I've been doing the last 10 years. I really enjoyed it. I've had a lot of success in it, and I've seen companies go from idea stage all the way to being publicly traded. We've done that twice now, So definitely it's been a fantastic ride. And the best part is I get to take all the knowledge and learning that I've done over the last 20 years and now share it with you guys here through these courses. So that said, over the course of my career, I've done a lot of work in Excel, all kinds of different financial planning, financial analysis ratios, forecasting, you name it. I've pretty much done in an Excel. So that said, Let's dive in the rest of the course we're gonna be looking at Excel and going through the content, so buckle in, Let's get started. 3. Excel Basics: Hello, everybody. All right, So before we get started on building our forecast in our budget, I want to give everybody some excel basics. So not everybody is an expert excel. I'm sure everybody's at different levels. I wanted to cover kind of the main things that we will use in this course. So if you're familiar with Excel already and if you're familiar with general formulas, things like adding subtracting with formatting shading cells. Um, underlining things bit emergence center. You re sizing rows and columns and you can go ahead and skip this video. But for everybody else, don't worry. We're gonna show you what you can do here. And the nice thing is because it's in video format, If you don't quite understand something, just go back and re re watch the video. If I, you know, maybe show something too quickly, or if you have any questions during the course, definitely send me a message. I'm always happy to answer. So, uh, that said, let's get started. This is just gonna be kind of, you know, some general general things were not actually starting on building our model here yet, but we will kind of do a few things like we were, if you will. Eso First of all, I have Excel Open already created a blank workbook. So this is considered a workbook. I've also already saved it. I named mine cash flow budgeting for small businesses. Um, good practice always to save and save Often. Often it's good to turn on the auto save as well. Mine doesn't have it. Ah, enabled because I saved to an offline drive. None last slightest. Save often. Ah, so excel. This is called a workbook. There could be multiple tabs down here, so it starts with just one blank tab. You can hit the plus sign and add additional tab. So each of these it's almost like a book. You know, these air chapters, if you will. However, you want to view it so something that we type here we'll is on this sheet or tab. And if you know the other sheets, it's not gonna go back to sheet one. There it is. So we'll delete that we will actually probably have two different sheets that are in our model the way we're gonna build it. What we'll do is we'll build the main forecast without more of the detail on one sheet, and that will create a summary sheet that just summarizes the data into a nice little dashboard, if you will. Sometimes that's a lot easier to look at. Okay, so let's see. So starting with. So these are all our Ah, our columns are all named by a letter on our rose are all numbered, so we always have a cross reference. So any given cell and these air cult cells is an intersection of a column and a free, which when we had selected in a row. So, for example, this cell right here is E five. This is E 10. It makes it easy to reference cells. And then as well, when we start writing formulas, that's how we tell Excel. What numbers to pick up will say. You know, add the numbers that are in C four and C five, for example. Okay, so let's do Let's just do some general formatting if you will. So I'm gonna was gonna type in some numbers, so we're gonna have a combination of like words and letters and numbers in our spreadsheet , you know, will be labeling things and then we'll have dollar numbers, obviously. So let's just type a few things. Then we'll work on some forming. So let's just say sales, um, and payroll just two. Very simple. And for whatever this, this might be our month. Let's just say that's going to January, and this is gonna be, you know, the very simple numbers and $80 the amounts don't matter right now again, we're just going over formatting. So you know that some simple, you know, just information, but we're probably have several months across the top, right? So it will have, like, February will have march, and we might have some numbers in here. Maybe this is 80 and this is 1 20 this is 60 and this is 90. It doesn't matter. Okay, so a few things one, you know, we'll probably want the dollars. I like the dollars to show as actual dollars with a dollar sign. So let's start with that. So one way to select a lot of cells at once so we want to do something to all these cells is if you click. And I always tell you what I'm doing since you can obviously see what I'm doing. Ah, If you click and hold through left, click Hold your mouth and the drag your mouse around. I'm still holding them that left click. It'll highlight whatever sells you get too. So we're just gonna get to here, and then I let go of the click. So I want to make those dollar signs. So most of tools we're gonna need are on this home tab and depending on what version of you sell you have, this might be labeled different, but for the most part, it will be called home. We're going to using a lot of these features. These features a bit of this, um, maybe uncertain and possibly over here. Um, but for now, we want to make these dollar signs. So Excel makes it really easy. They know that's a popular format. They give us the dollar sign format right here so we can hit that. And there we go. So the other thing I like doing, I like that just round numbers off. It really doesn't matter if you know, we look at the sense and it just makes it a little bit more jumbled. So I like to get rid of those decimal points um, you'll notice these two things here which moves the decimal point in or out. So ah, we want actually decrease the decimal. So we give this one click and give it a second click on. There goes two decimals. So I'm gonna hit, save, always gonna practice sitting save after I do a few things. All right, so already it looks a little bit better now, I kind of like the headers to always be bold and usually, you know, kind of called them out is like a label, if you will. So again, we're gonna click and hold and drag. So there we go. So we have those, uh, covered. So I'm gonna show you the bold feature. So right here we have some formatting. So be is bold italics underline. And then we'll get to these. Um, you'll notice, too. As I hover over this, it brings up a little pop up box, says bold and says control be so there's a few different ways to do things in Excel. So especially comes to formatting In this situation. You could just click the button and it'll bold it, which will do in a second. Or you could just hold on your control button and hit be that will bold it. A lot of times actually do use those keyboard shortcuts. But I will always tell you what I'm doing. So, for example, I could click this right now and it'll bold the cells. You notice that I can click it again. It unfolds up. I can also hold down my control button and hit press B, which I'm doing. And there you go. It's Bolden. So the other thing I like to do, like the center like titles, if you will. Um, So over here, right here. You notice different different alignments on this very simple left centered or to the right . Well, I like things centered for labels for a column. So there's gonna click that middle one and boom, there we go there, centered. Other thing I like to do is kind of, you know, we use some underlining just to sort of break things out. We don't want to spread sheet with just a bunch of information on it. It's not really clear, you know where the brakes there. So especially when we get to a total, you know, kind of break off the total. So let's let's put some lines in here. So again, we're gonna highlight these three just for now. So there's a difference between what I want to do and what this is. Um, this is underlying, and I'll show you what this looks like if I click Underline, it underlines whatever is in that cell. But that's it. It doesn't underline the entire cell. Now, this might be OK. And if you like that, then beyond, you know, use that for sure. Um, I prefer to do it a different way. That looks a little bit different. So you see there unlined. So this cell right here, this will do a border on the entire cell. And I'm gonna use this drop down box anywhere you see a drop down box. That means there's more options and they see a lot of them here. So I'm gonna use it next to this one. So borders, and there's a ton of them. It was a bottom border top left, right. You could do all this like all in in between, etcetera. Well, I just want that bottom border and you see how that looks. It's more of a solid It covers the whole cell. That's what I like. Is it really breaks it off? Okay, um, that's about it. I mean, we could make this. I don't tend to centre. You tend to leave these justified to the left. I don't necessarily always bold things on the left, either, if we have a total, so what will happen is you'll see when we get to where, when we actually build, the model unit will have totals at some point. That's what I would bowl, and I'll probably build the numbers as well, like for the totals. Okay, so let's see. Let's just take a look at some other features, if you will. A lot of times we end up copying and pasting things like maybe we put in some numbers and maybe the numbers for March. You're going to be the same for the next 12 months, and we don't want to re type these numbers each time. So easy ways we copy them and we paste them again. There's a couple different ways to go about it. On the on the excel itself, right here. This little one is copy and then paste is nice and big, so we could hit, copy, and then we can go where we wanted to paste. And you don't actually have to cover the whole thing. You could just cover to the top one. It paste and it goes. So a few other tricks with that. So if we copy and then we want to paste it all the way across, you could just highlight as far as you want to go on again, you could just do the top one. Or you could do both. Either way, it doesn't matter. It paste. And now we've got a whole bunch of me so much quicker. That is, than having every type, all these numbers, another way to do a few things. I was gonna delete these and I hit the delete key there. After a highlight of them, you can again. There's keyboard shortcuts, so control, See? And if you watch that green box around the cells turns into a dotted line, that means I hit control C there, copied. Now I'm just using my arrow keys, my left and right arrows. I'm going to hear enough a hit control V and I'm a road over hit control V. That's another way. Do it control via spaced. Um, I had escaped to get rid of the copy box. So again, control, see it escape. It goes away. I'm gonna go ahead and hit Save again. That's, uh, copying and pasting. Let's see it. So another way. So we did. Ah, this where we hold down or click button and highlighted cells. There's a way to do that on the keyboard. Just your information. If you don't want to listen, that's fine if you hold down the shift key. So we're in this cell right now. I'm gonna hold down my shift key, and then we're gonna use the arrows And you see, I don't know if you can hear me clicking, but on the keyboard. But as I arrow around, it highlights until I let go of the shift key. Then if you era one more time, it'll clear it. But for now, say we want to do this because we wanted to, you know, format all the cells. That's a quick way to highlight cells. Um, so that's that. We'll show you this little paintbrush. It's called the format painter. So say here we did re type. Excel is smart enough to know that since we had a bunch of dollar signs that's gonna continue. But let's say over here we had 10 and it's doing it. Or maybe we Let's just try and trying to get some numbers in that don't have the yoga. So say I want this dollar signs to be here now. Certainly, it's not that hard to, you know, click this. Click this. Um, let's say we had a lot of information you can copy going to say, Hey, Excel, whatever this format is, I want that to be applied all of these. So the way you do this is you hoppy this our highlight this you hit your copy format. I'm your format painter. Click that, you see it's dotted, and now we just go. We click and hold and highlight what we want and let go, and you see it formats that exactly the same. Let's see the city's get a little bit longer. I don't want to go too much further violence at this point, guys, you've seen most of it. One other thing. I'll show you. Say you wanted to sort of add some shading to some cells, you know, say it's a totals column. I'm not gonna put in numbers, but, um, these features right here so you can cover Phil will fill an entire cell. Ah. We typically use, like, blues and greens, just like colors to kind of highlight. So there we go. All we did was highlight them. You know, go to our fill box, pick a color. And there we go. Same thing. You can change font colors. I don't typically do it. I leave everything just kind of black. I'm not a fan of putting negative numbers and red. I think it just doesn't appeal. Well, um, anything else I think we'll get to when we, ah are in the middle of the course. But honestly, I feel like for the formatting, you have a pretty good idea to get you started. So what? That said, Let's go ahead and start, Bill, I'm gonna wipe this out so we'll start with a blank sheet again. And in the next video, we'll start building our budget and forecast 4. Budgeting Introduction: All right, everybody, here we go. So we have our blank worksheet. Um, if you're if you watched Excel Basics all I did, we went over the basics of formatting and whatnot. We didn't really get to formulas, but we'll do that when we get to them. Here in the model. Um, and all I do is I went I just delete it. That sheet we were working on, so first thing I want to do, we have our thing memory. We have Mari named it. Name it. What you like You betting to have save it somewhere you're gonna remember where it saved. You'd be surprised how many people save something that they have no idea where they say they're They don't remember what they named that. Make it fairly intuitive. Okay, so one thing I first like to do is just rename my tab. So ultimately, what we're gonna have is air detailed, but and I use the word budget forecast interchangeably. It's essentially the same thing. Eso We'll try to stick to a budget, but if I use the term forecast, its's the same thing. Um, so we're gonna have a detailed budget, and then we have a summary. So on this first tab, we're gonna have our detailed budget. When only did. There was double click it. Make it edit herbal. Same thing here. We're gonna double click on sheet three. I'm gonna call it. Ah, just summary. We know it's the summary budget. Okay, so we're gonna do the summary last. So for detailed. So the first thing I like to do, we kind of follow a general, you know, road map, if you will, to build this. So rather than the kind of haphazard at times, it might seem like we're a little bit all over the place, But there is a method to the madness, if he will say it's gonna have to trust the process. So first thing we're gonna do is I like to think of it is framing, You know, we're going to set it up. We're gonna put in, like the Rose and the column headers what we want, um, you know, Well, you know, do a bit of the the borders and whatnot, So it's all framed up, and then, you know, after So after we do that, we'll put in formulas for totals anywhere. We need totals then after that, we'll go ahead. We'll start actually putting a number so we don't actually put in data till later on on. The point is, we want it all set up properly. If you started entering data and editing it and then you realize you have to change something, it's just easier to get it completely set up correctly first, then worry about putting in the numbers so that will kind of be the end game is to have a nice budget with actual numbers in it. So the other thing I'm gonna point out here, you know, we have to do this. I'm basing it on a retail store. Um, you could apply this to pretty much any small business if you're in a sales. But I like a service business. You can certainly still Ah, do this to meet your needs. You just have to kind of re name a few of the things rather than, say, selling a product. Or, you know, having physical goods that you sell. You sell your service or your time Now you might want to get a little bit more detailed with and track hours building things like that. But that's kind of beyond the scope of what we're doing here. I just want you to know that you can apply this to kind of any type of small business. Okay, so let's get started now. I don't have any type of small business in mind where it's gonna assume I'm gonna teach you little economics if you also in, ah, the discipline of economics. When they when they sell a good and they don't want to name it, they don't want to pick on a particular good. They just call it a widget. It's basically just a generic term for whatever it is that you sell. So we sell widgets. So in our example, we're going to sell maybe three different types of widgets, and you imply whatever you want those to be. If you want those to be, you know, stereo systems or baked goods, maybe have a bakery. Maybe you have a clothing store and it's T shirts, pants and socks, whatever it might be. So what? We're gonna use widgets, So let's get started. So, first of all, what I'm envisioning for you is you know, you're a retail store or small business. You sell stuff you have money coming in. You have money going out, and you're not really sure where it all goes at the end of the day or within months. Um, this will be difficult to sort of track and forecast by day, so we're gonna have a monthly forecast. And what we're gonna do is for 12 months out, so we'll have each month across the top, and then we're gonna down the left side. You'll see when we get to it. But we'll have are kind of like what it is that we sell in. What are expenses? Are I'm also doing this Not just not so much. Based on proper accounting, I mean, basically, is very much just on sort of cash, cash flow, accounting, if you will cash accounting like, you know, you sold, you know, $500 worth of stuff widgets in the month. That's gonna be how much cash came in and knew paid your employees and paid for goods. That's what went out. You know, we're not doing Ah, hardcore accounting accruals. There were just doing basic cash flow forecasting. Okay, that said, let's get started. Let's put in some labels. I'm gonna try to keep inches videos to about five minutes between five and seven minutes. Let's say, um, so they'll be just kind of places where I go. OK, you know, we're at five minutes, you know, move on to the next video. Just I don't want anyone video to be too long. And that said, we're actually at about the five minute mark now. So I'm gonna consider this more of an introduction to what we're gonna be doing. Gonna cut this video often than in the next video. We'll actually start putting in our labels. 5. Months and Incoming Cash Labels: Okay, everybody. So let's get started now for Riel. Um, so the only thing we did do is we named our tabs and last video kind of give you an idea of what we're gonna be doing, So let's start. So I'm going to say we're going to a 12 month budget that's going to be for the calendar year. Let's just pretend it's December. We're looking ahead to the next year. You know, maybe we had a good year. We didn't have a good year, and we just want to plan ahead for next year. Were literally wrap our heads around. You know how things are gonna go. So first of all, I tend not to start like right on the top. Er right on the left. I'd like to give myself a bit of space. It's easy enough to delete columns and rows later. It's not that it's hard to insert them, either, but I know that typically things end up happening, you know, we might want to stick like grand totals on top, just so they're visible, whatever stuff. But for now, let's start here and let's labeled a month, So I'm gonna go with January February and was typing these real quick Oops. And I just go with the three month note for its month. Steve, if I don't talk while I'm typing, it's ah, I love mine. May. Okay, so if you remember from the Excel the video, I did what the basics and excel it attended, like tow center. These types of things I like toe bold them as well. So, um, again, if you didn't watch that and not speed, have you lit left, click on a cell and then hold down the click button. Then when you move your mouse, that highlights anything you cover. So we're just gonna cover these? I'm actually gonna go out here because when I didn't free, what I forgot to put in was a total. I was like a totals column at the end. So let's just go out this fire. Let go with click. I'm gonna hit bold right here the be and I'm also gonna hit centre right here. This will center your text perfect. And now over here, I tend to like I think in this case, it's going to total. Sometimes I'll leave a blank column and then have a total Ah, but for in this case, let's just do the total here. We want to keep it somewhat simple. Okay, I'm gonna hit saves. That's another good practice, Toby. In the habit of doing is heading save every once in a while. Okay, So they were often running. So next. So basically, the way I'd vision this is, you know, without having it is. So we're gonna have our months. We have a totals on down the left side. We're gonna have all of our incoming money that we're expecting. We'll have a total for that. Then we're gonna have all over expenses, money going out, a total for that and then a grand total. And then one thing I like to do to, because sometimes this can get a bit long is I like to Then copy that. Have that total also appear up here on the top. So you have a quick U C. January you are expecting to make whatever it is. $1000 of 15,000. We'll probably use just fairly generic and fairly low numbers in this example. You know may be in the thousands just to give it some flexibility, so But it doesn't matter. If you are making hundreds of dollars thousands or tens of thousands or millions, it all works the same. So we hit saves hit again. Never hit Save enough. So Ah, And there was a few things in the Excel introduction and show you that we'll get to I'm thinking of already So. But for now, let's do so. We want our sales. So I'm gonna put incoming cash. Let's just call it incoming and outgoing cash. So incoming cash. I'm gonna leave a few blank lines and then we got put out going cash. Now, one thing I'm going to do to is bold these So I can do that and hit bold and do that and hit bold now and he these cells, we're gonna actually list them. So there's a bit of an offset, if you will also let's list a few, and then we're gonna just do a quick but it clean up on the formatting here. So maybe let's come up with these line items, what we have and then ah, well, maybe cut this video often. Then we'll start up again. So, what we've said we're just got widgets. 12 and three Now, let's put that in. And then let's talk about it for a second. So which it won widget. Two loops, Widget three. Okay, so this very much assumes you sell three products. Um, which is great. That might be always sell. You know, I'm think like I said, this could apply to so many different people. Maybe you are, ah, eBay seller and Amazon seller. And you do only sell three products that great. This is directly applicable to you. But say you have a bakery and you sell, you know, 20 different flavors. The doughnuts. You make cakes as well. You sell coffee, you sell milk. Um, lots of different things. So this is where you really have to decide. How detailed do you want to track this, or how much do you want? A group? It cause I could easily just see it being you know, donuts, cakes, drinks, um, and then maybe other. If there's other little things you sell or, you know, if you do track your sales by different types of cakes or different types of doughnuts, you can feel free. This could be a long as you want it to be. I encourage you to put in enough d like I wouldn't just put sales. I wouldn't Just a total sales at a number. Like I like to see some detail, but at the same time, you don't want this to be overwhelming to the point where you just don't do it. So what I'd encourage you to do is come up with somewhere between maybe 3 to 10 categories that you can manage and that you feel comfortable forecasting as well. Remember, at the end of the day is we're goingto make up numbers for these, and and your numbers are gonna have to be real numbers. You're gonna have to actually think about how much your sales will be. So I encourage you to to sort of group these that's best for your situation. Another example. Be a clothing store. You know, I'm thinking, you know, pant shirts, scarfs, hats, you know, categories that kind of encompass a group of items, not each individual type of pants or anything like that. Okay, so let's And this video will pick this up in the next 6. Formatting Subtotals and Column Resize: Okay, so next let's come up with some expenses, so Well, actually, before we do that, So I'm gonna show you a little bit of formatting here. And it's something we didn't cover in Excel Basic. So, you know, there's a lot of empty space here, and we don't need. I like to try to keep things fairly compact as much as possible. Um, so what you can do is this works for any row or any column or groups as well. You can resize them. They don't have to stay the size and the way you resize a column where it works for Rosa's . Well, if you hover between two, so right here between the A and the B and when your cursor changes to this, have you click and hold. Now you left, click and hold. You can drag your mouse and make it as big or small as you want. It will be the one on the left, so what I want to do is I want to move it over here and you'll see why in a second. So there we go. So now column A is fairly small, but it helps create that little bit offset, if you will. Ah, with the actual items. Now say this was a big, long word and it was hanging over here in the January. Well, what we could do then is make be bigger. So now you could type away and it would just feel in here. You can't do it with multiple columns. A few highlights several, and you pick one in the middle. So not the very end, but one in the middle. You'll see it did all of them. Another trick if you want to undo. So I don't want to keep this this way. You can hit controls, Eden, do something. Or up here is this sort of backwards arrow and under and does the last thing that you did. So there you go. That's it. Save again. And we probably will resize these later on just with numbers. They tend to maybe be too small. So we'll see. So OK, so we have our widgets. So the other thing I like to do is I'm gonna put in eventually a total for this. So again, you know, envision this. There's gonna be numbers all in here. How much we expect to sell of each of these each type probably holidays or busier time. So Okay, but let's put in a total. You could certainly do it over here on the left, or it concluded. Here, been a personal preference. I tend to like to do it over here, and I'll put total income in cash. Just kind of reiterate what it is. You see that that one does hangover. So I'm gonna resize this column just to touch. Um, of course I like to bold it. And then another thing. So remember, um and we didn't do it yet. Up here. I like to underline, Um, a few things that kind of break separate, uh, items, if you will. So, um, I like toe put a border underneath of these. And if you remember, if you click your bottom border button here that creates that border, I was like to put a border across the left. Just so just so um so I start here and I'm going to go down, and we don't know how far down outgoing cash is going to go, so I'm just going to do it to here, and then what we can do is we can fix it up later. Sometimes I like to put it in justice, you know? So we start to see this come together and then weaken, you know, certainly touch it up as we go eso the way we get a left border here we do our drop down box. One of the very first times is left border. So there were ghosts. Now we have a nice ah, bottom up here and left here. Um, let's see. I kind of want to get rid of this, um, Rove. So if you highlight a row, if you click on the letter or the number, you can then do a couple things. The easiest way is probably for you to just come up here to the delete button and just hit delete on it disappears, and I'm gonna hit save again. So one other thing I want to show you, and maybe it will be easier. Actually, I'll show you in a little bit when we get some more information here. Um, I'll show you what I'm thinking of. So for now, we have our total income in cash, and this is gonna be a total so vision, you know, we're gonna have numbers and we have a total. Well, I kind of like my totals again. Toe. Have some underlining. So what I'm gonna do is I'm gonna highlight this. Um, these cells now, one other thing I want to point out you're gonna highlight an entire row if you click here , but say I did some formatting. Now it's just gonna go out forever. And I think that looks messy. I like it to just stop where the numbers actually stop. So I'm just gonna highlight individual cells again. I click left, click I hold a drag, My mouse let it go here. So under formatting, there's a couple of different types, So typical sort of budgeting, sort of, ah, standard, if you will, That at least that I like to think is for sort of sub totals, which I would consider this a sub total is toe underline, um, to put a top on bottom border on it, but just a single line. So on. Actually, there is no, um there's a top bottom border, but it's a thicker one. I like to just use the thinner one. So I go bottom and then I go back and hit top you have to do double duty. So now you see this. So we're gonna vision this. We have some numbers here. And then a nice total here. Perfect. That's what I want it. Go ahead. Save again. All right, We're in about four minutes. So let's go ahead. Stop this video. And then we're gonna work on some of these outgoing cash items and brainstorm what sort of things you would have as a business owner. 7. Outgoing Cash: all right. So, yeah, let's let's start working on some of these outgoing cash items, so, you know, this is gonna vary on your business. So again, I'm gonna throw it. Those few examples, because it kind of helps us think about different business models. So, you know, I'm thinking of the bakery. So the bakery, what do they have? Well, they have to spend money on supplies. Or maybe maybe the bakery buys their doughnuts pre made, but Or let's assume now, let's say they make them. So they have to buy flour and milk and all those ingredients you probably buy from one vendor, I would think. Or maybe you goto cost going by the whatever the case might be, you're gonna have costs for ingredients, for your for your items and that we're not gonna type these quite yet. Um, what else would you have? You know, you maybe do some marketing. You buy ads in the local magazine or Internet advertising may be an asshole. You're gonna pay your staff's. You have payroll expenses. You know all the employees who are working. Let's see, What else would you have? Maybe have a vehicle, maybe do deliveries So you have a vehicle, you have gas. You haven't car insurance on that. You probably also just have some other business general expenses. Your business license. Ah, your Internet site, your telephone, your internet connection. Probably have a cell phone. So those air kind of more just sort of, you know, operating expenses, if you will. So let's switch gears down. Think you know, I would think a retail store would be very much same. You know, you're gonna have, like, obviously a rent, and that is something as well we didn't think of for the bakery, but their rent, you know, other operating expenses, their telephones, air faxes, Internet expense, cellphones at such a rate of your payroll expense. So ah, retail, business and general is gonna have similar kind of expenses. I mean, they might very little bit, you know, the clothing store is paying, you know, suppliers further further inventory, but nonetheless, But let's think as well, that Amazon person that's selling on eBay or Amazon So no, they probably pay rent. They probably work from home. Let's just assume in this case at least probably still have, like, the Internet expense they do have. They have to buy items to sell on Amazon. Or maybe you. Maybe you make crafts, you sell them on, etc. So but you stuff to buy whatever it is, you know, maybe you unit, and you have to buy the wool and stuff. So think about all these. All the places you spend money as a business owner. That's what we want to capture here again. We want to do it kind of in categories we don't want. You know, we don't want list out every single detail, like, you know, if you, you know are the bakery. You don't need to list out cash, go out for flower cash going out for milk. No, It's just sort of your supplies, if we will, for for the inventory of cell. So, um, so we're gonna try to use some generic terms here, And then again, I encourage you If you use this Ah, template which I provide at the end of the course, Just rename them whatever it is that it is for. You are if you build your own. Obviously you can if you're following along, put in the names that you have. So I tend also to try and try and sort them a little bit by importance, if you will. Like, I would think of, you know, things like your inventory as sort of a primary expense for your business. So, um, I want to call it inventory. Let's call it inventory. So what ever what a Whatever inventory tends to be again if this is your flower in your milk or this is that clothing you buy or this is the wool that you buy or it's Maybe, you know, you haven't even a business where you go out garage sailing, you buy stuff, and then you re sell it on eBay for a profit. This would be the money you spend on your goods. So, um, called inventory goods. It's called inventory or goods. Um, actually, no, I got called. Um, this could be rather long, is the only problem. I don't want to make this too long. I was gonna say whatever it is that you buy to sell, so But hopefully you guys will remember that if you build this after the fact. Okay, um, I'm gonna put in rent because assuming most people do have rent so rent or more. I mean, mortgage. If you own the property, do it. If you own a house, I wouldn't include your rent and your arse or your mortgage in this cash flow. Unless you directly do pay your mortgage this part of your business rent, say office, um, office expenses. Or is this just call it, Ah, office in general expense. We're gonna make this a bit bigger. And again, we can always resize this. And you know what I'm gonna do here might include an extra tab trying to think. Now, I'm not going to you guys. You guys will remember, um, Woody to these is and just the main point being capture everything you spend in your normal course of business. Okay. Syrian Mitory goods, your office, your general expenses. So again, this is like your utilities. This is your cell phone. It's your fax. Um, so, our payroll for a payroll employees, um, if you have anything I don't know if you pay health insurance, things like that, I'm gonna include it just as a placeholder. Um, certainly. Again, I could put in 50 different items here on Lee. 10 of them might reply to your business, but that's okay, because you can always go back and and delete Rose. And if you remember our handy trick, you highlight the row and hit delete. That's a simple as it is. Or you can always just common type here and and rename something I'm gonna hit. Save. Okay, now this videos up to five minutes already that goes so quick. Um, let's cut this video off. Then we'll come back on. We'll pop in. May be five more ideas on outgoing cash. Then we'll put in our framing and go from there. 8. Outgoing Cash 2: Alright, guys. So we had our five expenses. I did a little brainstorming in between the videos just to think of some other items you might have. So, uh, just going get them now. Quickly to could I think you get the idea of what you need to do. I put in travel, um, Mary not apply to a small business. Or maybe you want to replace this with, um, you know, like, if you do do delivery, you know, this be your cost of gas and insurance for your car. Marketing is one thing we mentioned before some marketing advertising That's online marketing, print advertising. And again, if you want to break those out, certainly could, ah, business expenses. So, um, I'm thinking, like your business license. If you need business insurance, those type expenses, office in general, expenses more like again, your you know, your telephone and and, uh, your fax line and whatever else you might have business expenses and more like, direct like again, um, like an operating license. Business license, etcetera. Um, I put in shipping expenses. This is more being if you ship stuff, maybe an eBay business and then one other thing to will be your taxes. I mean, um, you probably to pay your quarterly taxes to your city and your state. Let's put in taxes. Okay, So a couple of things there and let's leave it at that. I mean, you put in you need to think about your business and what you spend money on. It really shouldn't be too hard. I mean, you should be able to just look at your bank statements, see where the money goes. Okay? So a couple things one, this hangs over this. So we would need to make this column just a touch bigger to we didn't bring this down far enough. And we're going to need to put in a total anyway. So let's go and put in the total. Um so total outgoing cash. Actually, one thing that I encourage you to do, and we couldn't get it up here to, um I won't bother to put it up there. Just leave a blank space holder. Um, or maybe just misc. Let's put in a Miss Klein and a blank space holder. You come up with another category in the future that you want. Include? You've already got space for it. So here we're gonna put in our total outgoing cash. We're gonna, um and I'm gonna show you how to deal with this where you scroll down, and now you can't see the months. That's the other thing we're gonna do in this video. But first of all, we want the format of this to be the same as this. There's a couple ways to do that. If you you could just redo it, we could highlight this entire row. Get I'm holding down shift a narrowing. Not that hard. We would bold. We would do the lines, Aziz. Well, though, if you remember, if you watch the Excel Basics video, if you highlight anything and this case, I'm just gonna highlight this whole row and hit this little brush. It's the format painter, the format painter. And then click this road here. It applies the format of that row to this room. Ah, the only other thing here is we have a bit of gaps. Let's go ahead and put in those left lines. If I'm going too fast for you, just posit, uh, or you re watch the part of the video that you missed. Okay. I'm gonna hit save. So the only other thing we're going to do in this video is I'm gonna show you how to take care of this. So we scroll down, we lose our you know, our months then we can't see everything at the same time on the screen, so you could certainly zoom in and zoom out. But I don't want you to do that. There's an easier way to handle this. And this will be a good tip for you just in the future and excel, if you will. What we can do is we can freeze freeze this so that these two rows are just frozen. They will always show no matter how far down we go, Rose one and two will always show as well. In this case, we're lucky. I mean, we're only going out 12 months, but say we had two years and we were scrolling over here. It's the same problem. We lose what we see on the left. So there's a way to freeze these as well. So what we're gonna do is we're gonna freeze these top ones and freeze these left one. So they're always on the screen and the only thing that will move is all this area in between. If you place your cursor and click on the cell it, that's kind of at the intersection of where you want the freezer. Like we want everything above this and everything to the left of this to not move. Go there and then we go to and I need to think for a sec. I believe it's under view. Yes, So the one thing we're gonna do, a kind of off the main home tab. So if you go to your view tab, there's this thing called freeze panes. Now it has a drop down box. But honestly, if we just click it, it's gonna do what we needed to do. I'm pretty sure hope it actually does ask us. So it's ask us, Do we want to freeze top row, the first column or just freeze panes? Just click freeze panes. So you see, we lost cover forming. That's one kind of downside to this, and I kind of knew that was coming when I was putting that in. But those gray lines kind of did note now that that's all frozen and this is frozen and the way we check that If we just scroll to the right and he's watch over there on the left. Columns A and B Don't move. And then same thing if we go back now we go down. Rose one and two. Don't move. And you know those other roads are still there. They're just kind of sliding up behind rose 12 step. That's it. How that's how we handle that. So now as we scroll down and we'll have a total here, we can still see This is January, February, March, etcetera. Okay, so it's is almost at the five minute mark. We do have bit of time. So what I want to do just since we're here, I want to put in a grand total. So we have our incoming cash are outgoing cash. We want, like, a net cash total each month. I mean, that's really what we're after. How much money are we planning upbringing in? So let's just do this. Let's just go. Total net cash net being you know, the difference again. We're gonna do do something a little different here, so I'm not gonna bother to copy this cause, um, for grand totals, I'm gonna highlight these cells first. I like, and I'm gonna go back to my home tab. I like to use the double bottom row. So this is kind of click and show you what it looks like. This kind of standard and sort of accounting and finance and budgeting. You know, this kind of denotes, like a main total, which this really is. You know that those two others were sub totals. That's the main total. Um, I'm gonna bold it. So I'm just gonna highlight that and hit bold, bold anything in there. And the other thing I tend to like to do is I like the shaded. Just to be honest, you don't have to do this, but just giving a light shading. Um, whatever color strikes your fancy, I'm going with green because green for money. Why not? Okay, so let's save this will cut this video off, and then in the next video, let's probably start putting in some formulas 9. Totals 1: All right, so here we are. Um, okay, let's put in some formulas in this video, and that's probably all will do for this one. We'll see how far we get as well. So where we're going to need formulas. Well, we need him across the bottom here for these totals. We're gonna need a mont down the left side. Um, so let's just start with these and we can do some copying and pasting here, which is nice. So, um, we didn't go over formulas in the, um, Exelon Basics, but we could do it here really quickly. So, um, Excel really is based. The point Excels, like to build cool things like this, but it really is very powerful when it comes to math and formulas have some very complex things you can do in excel. But we're going with the very basics. The basics works, competing, some adding and subtracting. So I'm gonna show you how to ah type of formula. I'll also show you the auto some feature which you might want to use on the first of all. So the type of for me to go to the cell where you want your formula and you can just start typing. So all for me, let's start with the equal signs and we hit the equal sign and you'll see it here. And you also see it up here. I don't know if you know it's any time we type something. It appears up here so you can do things up here. So we have equals. So what we want to do is we want to add these three sells, right? So there's a couple ways to write the form done. I'm gonna I'm gonna show you two of them. Um, what we're gonna use the 2nd 1 mainly just gets a little bit easier. Um, so then it's basically so we want to add C four c five and C six, right? These three. So we could type them, or we can click on them. So we could either, uh, just click and hold and dragged down. And if I let go and hit, enter. So it's going to say value because we don't have anything I'm actually gonna put into just someone's just toe, make it work, and then this. There's not working. Let's see. You know what? I don't think I did that run. Let's do this again. Hit! Delete. Sorry. That's it. Equals it should actually be this. Plus this plus list. You can't really use that range in this format. You can in the second way, I'm going to show you Hit, Enter three. Slam Makes sense. So just to go back to that formula, you're saying this cell equals C four plus C five plus C six. That makes sense, Right? Okay, well, you can kind of get the sense if we have to do that for this one. You know, we're going to add 11. 12 13 40. It's gonna get rather long, and we don't really want to do that. Um, So what I'm gonna do, I'm just gonna put someone's in here, actually. Don't even have to have numbers in all of them. But let's just do it for fun, Okay? So let's do the same formula down here. But now we're going to show you a different way. Um, so there's something called some. So if you hit equals and type the words some and you see it drops down a box of different some formulas. These are all different variations of it. We're going with the basic, um, so it equals some you doing open brackets and you see it brings up number one, number two, etcetera. So this is where you can click. Hold down your click drag, let go, and then you can close your bracket and hit Enter and there's your total. So I know that probably went really quick. If you're not familiar with Excel, it might not make much sense. Let's just review what we did. Um, so we started with type equals and then the words some click your open bracket. Then just click and highlight all these numbers. Let go. At that point, you can honestly just hit enter or you can hit your close bracket, Um, which is here on the end. So you see here that range does work in if it's in sort of a some form and it doesn't work when it's just equals, you know, see, 11 you know, see, 21. So that's a quick way. And it promises saying is your basis saying, Hey, some are add all these numbers together that are between C 11 and C 21. That's essential you're doing. We certainly could've did it here, but said. We chose this way. You'll see, though, if we type equals some open bracket. We highlight these three closer bracket, and there we go three. So I tend to use the some formula much more. Um, it's just cleaner, especially because typically you are adding a lot more numbers than, um, just individual is like a few individual numbers. Another way I want to show you I'm gonna delete this total. If you have data in here already, you can come over here again. We're on the home tab hit auto some. Now it's sell a smart enough to figure out Hey, there's three numbers directly above me that's most likely what he wants to add. So if we just click the auto some button, see it automatically put that some formula in we hit enter and it's done. If we went here where there's blank and there's nothing and hit auto some, it's just guessing. It said, Well, there's nothing above me, but there's kind of some numbers to my left. Maybe that's what you want to add. So that's why it doesn't really work. Well, um, just with blank sales, same thing here. It's just looking. It's going. Okay, Well, there's a number. It must want to adhere now. So if you have data in here, it's certainly easy to hit the auto some button and do that if you don't have data, Um, you know, which we don't. I was assuming, you know, we're building this from scratch for putting in our formulas, and then we're gonna put in our actual data for all these numbers. So I don't want to put in dated dummy data just for using auto Some, you know, I want to just be able to do for analysts up. That said, we're at five minutes. Let's cut this off in the next video, we'll finish up these these totals. I'm gonna show you a quick way to know. Populate this Now will also do the ones across, and then we'll go from there 10. Totals 2: Alright, guys. So here where we have this. So now we want the same total all the way across, right? I mean, we want each month to be total same thing down here. We didn't even put in this number yet. So you know what I'm gonna do? Let's first start with this. So this is actually just gonna be your total income in cash last year? Outgoing cash. Now, this number right now is not gonna be garbage. You know, we just have small numbers in here, but just for the sake of making it work, um, this one. There's no quick button to press, unfortunately, but the formulas fairly simple. So we just put our cursor here. We hit the equal sign and we say, Hey, we want to take this number. So I'm just gonna click on it. We want to subtract and hit the minus sign, and you can see it up here. You can see it down there, and we want us to track this number from it. So there we go, minus 38. Hey, don't take the total incoming. Subtract the total outgoing. And here's what's left at the end of the month and that's what we want. Now, um, we haven't format at this yet to be dollar signs, so let's let's do that now, I guess before we get too far ahead on and then we can worry about the formula, So all of this is gonna be numbers, right? So let's do that. Let's just highlight if you remember, so we don't want to change the formatting on these these cells, but everything in here between so again I just clicked. I hold a drag, and it's okay if you go beyond. I mean, it doesn't matter too much in this case. We're not putting anything else out there. And if we did, you could always change after the fact. So we want this all to be dollar signs. Come up. Here we click our dollar sign. And now I'm not a fan of the decimals. That seems a little bit excessive. You know, we don't need to track things to the penny. So we're going to use our decimal remover. Decrease, sir. One click, two clicks, and there we go. So now we have just nice numbers, negatives and brackets. Some people prefer not to have dollar signs like in the in the data. They just wanted on the totals. And that's fine. That's up to you. Um, I personally do, like having the dollar signs there. But again, this is some of this is completely personal preference. Hit save. Okay, so we have Hey, we have the beginnings of, ah forecast without any sort of real numbers yet, but, um, so next we want this formula all the way across. So there's easy way and it's just copy paste. Essentially. So we're gonna copy again. You could hit the button here, or you can hit control C. We're gonna highlight all these cells across, and we're gonna hit paste. Now there's a problem you see right away. And I kind of did that intentionally. I'm gonna hit, escape and show you it kind of because we copy the sell, It also copied the formatting. And if you remember to the left of here, we had a border. So we don't want that. I think it looks kind of ugly. We don't want borders in between each month, so I'm gonna undo that. I'm gonna hit escape. All right, so let's go back here. We're gonna hit copy, but this time when I'm gonna highlight, I'm still gonna pay. So what, we're gonna do a little different on this? So pace just means paste. Everything pays the format paste the you know, the the formula. Um, if you do the drop down here, there's different versions of paste, and one of them is just formula. So all it's gonna paste is the formula. It's copping it's not gonna pace the format. So let's just do that formulas. And there we go. It didn't copy any of the formatting and forever all that for men that is here is because we already had it there. Um, so that's perfect. So quickly we're just gonna go down here, we'll do the exact same thing we're gonna copy. We're gonna highlight these sales. We're gonna drop down paste and hit formulas and same thing here, especially, um, let's see. Copy and highlights and lastly paced are formless. And there you go, just like that. All those totals are populated so quick, that is so you can see how once you start building it, you know, we start with that excel the blank workbook. But once you start feeling things in, it's easy to then copy and paste. Andi sort of quickly make things good. I think we have enough time in this video to do that totals across that we can just call it quits on the totals. So basically this total. And you know, one thing I'm gonna do, I'm gonna put in that line again. So let's just put in a line down here a border, if you will on the left, to just kind of break off the total. So I'm highlighting all those cells. I'm going to my borders. I'm going toe left. There we go and see how that looks. That's nice. I get a nice kind of separation. So this here will be a total all the way across. Now again, If there was numbers in here, we could hit auto some and it might actually work. Let's give it a try. Hey, it actually worked. Um, I'm usually a fan of just typing formulas myself, but the auto some work because we had a number over here, it grabbed it. So let's just do that. And now you could do that cell by cell, which will do for now. But when it comes to down here. Let's just try to just make sure it works. I'm sure it does. Yep. We can probably highlight all these cells. And again, I'm holding down shift in my arrow keys. You could also do it with your mouse. Let's try and hit auto. Some see what happens now. I always like to check him. So before we go too far, if you go to any selling hit F too, by the way it brings up the editor and which is nice, because you can see exactly what happened. And look at that. I'll be damned. It it did them all right. And remember, this is a total of that. And this is that. Subtract that. So perfect. So the auto some saved us today. It really ah went really quickly. The other way to do that obviously would have been just to type it. I would have typed equal some bracket, highlighted all these and then enter. And that's essentially the exact form of that. The auto some figured out for us. And then I would have copy that formula up there and then down here. So perfect guys. That said, Hey, you know what we have to start seer of a ah, of a nice little budgets. Let's say that. And then in the next video, let's start, you know, thinking about putting in some numbers. 11. Budgeting Basics and Sales Data Entry: Alright, guys. So, first of all, I'm just gonna clear out these numbers really quick. Um, again, A few highlights. Syriza cells hit your delete key. Clears them right out. Be careful not to delete any formulas. Perfect. So at this point here, you have basically a blank, detailed budget. Um, and you'll see what will happen, actually, is one more thing I do want to do in here, um, with formulas, and it's I want to do when we look at this, you know, we can't see the bottom. And I know we can scroll down, but I kind of this. Is that the punch line? You know, how much cash do we make? Are we gonna lose at the end of each month? I often put that number up here. So even though it's repetition, I just want to see it. That's the punchline. So it's really easy. We go to this cell, we have their equals. And what does that sell equal? It equals this cell. We just want to be the same number. Simple is that? And so now where he's gonna copy this? I'm just holding control. See? Again? We don't want the the format because if you remember, I think there's a border up here and might not have extended up here. But regardless, I copied it. We just want tubes. We copy that. We're gonna paste it all the way over here. But we're just gonna do the formula. Perfect. Now, we didn't format these, so that's part of the reason why. So, um, I'm trying to remember, I guess. Let's let's take a risk. Let's do the format painter. I don't remember if there was ah line or not, they're apparently not. I don't think I had the line all the way to the top. Um, I do, actually, though, on this side just want to put that line again. This is just some of that cleanup. Personal preference. Perfect. Okay, so then when it comes time and we get, you know, numbers in here, they'll be up here, and we might put in an additional line down here. Let's just see how it looks once it's all done. Okay, so there you go. That's the framed out, um, detailed budget. We are gonna build a summary, but I would say our first best bet would be the populace put in some numbers. And when I save this and I uploaded to the course for you to download, probably gonna leave it with the numbers in there just so you see how it works. But then it will be up to you to go ahead and delete those numbers and put in your own and maybe, you know, change these categories, obviously to whatever works. So, um, we're going to try to make quick work of this just cause I don't wanna want. Once we do a few numbers, you'll get the idea. We'll see how it goes. I might stop the video of some point, populate the rest of it, which just sort of some dummy data, if you will. Um, so what you want to do? Here's the process. This is getting more now into actual budgeting. So you need to think about this. Need to sit down, to be honest with yourself. So one good way is to look at last year's results. You know, obviously, retail tends to do better at the end of the year. You know you have the holiday season, so I would expect to see an increase there. Um, if you are in the air conditioning business. You probably do a lot better in the summer than you do in the winter months. So that's something to consider again. Look back at your prior years and how you did. And that's probably a good starting point to come up with numbers and as well, you just be honest with yourself are say, say you're in a non cyclical business. This you sell stuff on eBay holidays is probably still busier for you, but it doesn't met like February doesn't different from May because there's not a lot of difference. So, um, you need just to think about what? How much did you do? And you also need to plan so realistically, what are your goals for the business? Do you plan on putting in more effort, Um, and doubling your set like Do you have goals? May be your goal is to double your sales over the next year. Well, then we're gonna have to work that in. So you really need to think about these numbers. You know, you've come this far and he built this school budget. I want you to really use that now is a tool to help you run the business, so that's just a little bit about budgeting. So again we're gonna do is very simple numbers, just like in the hundreds, I think, Um, just to sort of fill this in and give it some color. Um, so let's say with today, whatever the again that might be. It's your doughnuts that your pants, it's your Beanie Babies. You sell on eBay. Um, let's say January. You typically sell 100 February. Let's actually let's do this. You know, this isn't an exact science as well, guys. So a lot of times people might do by the course, I might say, OK, let's just count on 100 every quarter. And then by April I plan on ramping it up to 1 25 I want to be at 1 50 here 1 50 then it's holiday season. I really This is my heyday. I'm getting up the 3 50 in December as well, 3 50 Okay, so for widget a whatever that is now, maybe would you be isn't as you know, popular, but it's still a seller. So maybe this one is just 50 50 50 maybe, and crank it up to 75. Oops, when maybe than 100 and then maybe even the holiday season. It just doesn't sell quite as well. So let's just go. Let's go toe 1 50 again. We're just trying to put in some numbers, see how this looks and kind of how it shakes out. And then would it see? Maybe this is something that's very just sort of all over the place. Um, maybe it's something you're not. Maybe it's a new product. You're thinking about selling and you're not. You're not sure how it's gonna sell. Um, So rather than try to guess to mate, you know, if it's 100 if it's 50 if it's 500 we're just going to say, Hey, you know what this will sell roughly. I don't want to use the same numbers is up above. Let's just say, Ah, it starts off at 75 and it's just gonna be 75 halfway across the year. There's still really increase. And then you're hoping by mid year it gets to 100 and you kind of expect to see a slight increase here, but you're not gonna make a pin your hopes and dreams on it Okay, so I just hit control s, which is also the same. It's safe. Okay, so we're at the five minute mark. Let's cut this off. Um, next video, we're gonna feel in a few expenses, and then I'll probably cut it off, and then I'll just go ahead and populate the rest of it before we get them to some doing some analysis. 12. Outgoing Cash Entry: All right. So let's ah, let's come up with some numbers and kind of game plan for our expenses. So, um, I kind of want to skip over inventory a little bit, just for a good reason. In second, let's work on expenses that tend to be a little bit more stable and then I'll explain the about inventory. And why should put a little more thought of that? Rent? Rent is probably gonna be the same. Maybe Iran increases midyear, whatever the case may be. But that should be a fairly straightforward number. Let's just gonna say it's, um And again, these numbers might not make sense. Like hopefully Well, maybe not. I mean, if you're selling on eBay, these might be perfectly acceptable numbers. You know, if you are renting an office, your bakery or clothing store, chances are your sales are much more than this a month. So let's just assume to keep it relative or rent is $50 a month, and we're just gonna put that all the way across. So I'm gonna hit. So I get tired of typing 50. Obviously, what I do often times since I know this one has that left border, and we don't want to copy that, but this one doesn't. So I'm gonna copy here, arrow cross and paste it much easier. It's a little trick there. Ah, office in general again. This is your phones and things like that. Your paper, your printer printer drink. Probably get a consistent number. I guess it's 25 now. You as well. I'm kind of filling these in line by line. You could fill each of these individually, then copy it across If they're gonna be the same, um, payroll employees. So this one, you might need to think about that. Morgan, let's just say during the holidays you have to pay a bit more. So I'm going to say it's 75 fairly consistently. We're gonna copy. Let's just copy out to here. But maybe come October, it's 100 cause you bring on some additional people and maybe here it's 1 20 cause you have additional people and you give Christmas bonuses health insurance again, this one completely depends on your business. If you have something like health insurance again, we're just trying to put in some numbers. So this one, I'm just gonna get stopped there because I think we're gonna copy across some of these numbers Travel again. This might not apply whatsoever to your business, but we're just going through the mechanics of entering numbers again. And this might be one where you you say, You know what? I'm going to, um, on eBay Sellers conference in June and probably in December. All I'll go to a trade show or something, so it might well be zero, like you have to be afraid to enter zeros. And then maybe here, all of a sudden it's 50 and the 00000 and then it's 50. Probably acceptable. The point of this is to come up with a reasonable number at the end of the day. Um, marketing advertising again, This might be one where you rampant up towards the holiday season want people be aware of you. Or maybe you throw a bit more money out of here because that's when sales tend to be slow and you want to bolster them as much as you can see. Maybe you just spend baby, spend nothing. Here, you spend 10 10 then you know things are okay in the summer. Then you start ramping things up, and then you spend 10 and 10 business expenses again, just like your business licenses, things like that. That's probably a one time expense. So you'd have to figure out what month that is in and apply it. Let's just stick it here in the summer. Let's say it happens in July. Have to renew your business license and it's 10 again. I know it's not $10 most likely, but we just trying to use small, sort of even numbers from these lobby zeros. I'm just gonna actually can just copy that. I should use my own advice. Okay. Shipping senses again, totally depends if you're selling on eBay. People probably paying you for shipping as well. Um, I would encourage you just a tip. If that's the type of business you have, you might either wanna, um since that money probably comes when you sell the items. So they're paying you for shipping, and it's included in this. So you do want to put in then the shipping expense that you're having to put out. So, um, again, maybe it's just 555 all the way across, and maybe at the holiday season, it ramps upto 10 10 and 15. Okay, Taxes. You probably just have to make quarterly tax payments. So let's say they're in March and they're 10 and then it's going to be 00 10 and then you can copy multiple cells. Another little trick hit control C go to where you want it to begin hit paste, which is control V. And we do that there. So there you go. There's your quarterly taxes and miss this Just a place where you know there's gonna be other expenses. You don't know what they're gonna be. I think we ended up losing, remember? Was gonna put in a blank line. I think I lost sight. I put the total here, but that's OK. Um, Mr Consent, You don't know. You just know there's other things that come up. It could be anything. So, um, you know, one thing we didn't kind of put in here was ah, compute like maybe you need to buy a new computer every other year, you know? And that's something that you know, you don't you know you don't have an individual line for it is not anticipating it, but it happened. So instead of a forecasting every month for that, maybe you just have a slush fund. So you budget for $5 if nothing happens, you put it aside and save up for that new computer. So just put in a monthly placeholder. Um, I'd encourage you, though, if you do often buy equipment and stuff and you know, that's gonna be regular included as a line item gonna hit safe and a copy of that 20 across for health insurance. Okay. Okay, so we're starting to see how this works. But we left inventory blank and for a reason, save again. So inventory is probably gonna vary just based on your sales, right? I mean, if you're selling more stuff, I mean, you had to buy more stuff to sell. Um, so typically, so there's a couple ways is you can just profit. I mean, you know, we're not obviously going to too sophisticated here. Um, you know that, You know, roughly to sell all these items $225 worth you would have to spend save roughly $75. Maybe you make about three times your money on the stuff that you buy. So there's a couple ways to do this, you could say OK, whatever I'm selling. I probably bought the month before, Or maybe about it two months before, Um, as well, you could just estimate eso. But remember, we're really trying to forecast our cashier, so be honest with yourself. So, for example, I'm thinking out here in December when you have big sales. Well, that stuff that you sold, Did you buy it in November? Did you buy it back here in July? So you had it ready? And that's where you need to relate this. Number two, what's being sold now? I'm gonna soon for this example. Everything that you buy and sell. Um, I saw everything that you sell you bought the month before. So one month before you bought it. And now it's selling. Certainly that's not a smooth is that you're gonna have things you bought that didn't sell you stuff you bought two months ago. That did sell. But we're trying to come up with just a realistic sort of expectation. So a couple ways to do this, you could I bought You could always just say Look at February, and it's always gonna be 1/3 of that we're gonna pretend you can sell things for three times the money in this example. So you could do it with a formula which I'd actually encourage you to do it with, um or you could just calculate it. So for January is gonna be this number that centrist. So the formula for that would simply be equals of this number divided by three $75. And that's the simple of that. And then we can copy this all the way across. But we have to watch out here because it's gonna be looking at this number. So just a word to the wise. But let's copy this across. First of all, let's just copy it all the way across just to demonstrate what does again. We just want our formula painter. There we go. So this will always be in if we hit F two on any cell. It's 1/3 of that. It's that divided by three is. So we're buying this here. We're selling it all here. This is the sales of that and encourages Well, if you want to break this out by the same categories, there's not a bad idea whatsoever. Um, and this example, we're not, But it's that you can see it's not that difficult at this point to do that. So the only problem so we get to hear is this is coming off the totals. That's obvious. Not gonna work now. We haven't forecasted January get. Maybe we go off this generous forecast. We know that January tends to be a slow month after the holidays, so let's just maybe type this one in. You know, let's just go with 75. Whatever logic you want to use, like it has to make sense to you. Okay, guys. Hey, guess what? We got ourselves a little. Ah. Little forecast here, and actually, the numbers kind of worked out somewhat well. So one thing I see right away, I want to do something with these. Um, I want toe. Probably bowled them, and I want to give them some shading as well. There we go. And I almost want to underline them just to kind of clean things up here. I hope you don't see it. Let's see, They either didn't click it or there's a formatting issue. There we go. OK, so we have a slight problem because we're not making enough money for three months. In fact, we we lose quite a bit another Little Excel tip, and I know this video is getting along. Actually, let's cut this video often, Um, and the next day let's do some analysis of this now. 13. Budget Analysis: All right. So let's you know, this is the forecast we put together. This is my fictional business. I sell my widgets. I put in all these numbers, and now I go, Ok, what do I do with this thing? Well, first thing I've got a problem. I'm losing money for three straight months. Then I somehow make a bit of money. I lose a bunch of money and make some money lose. And then I have my three good months. So and then at the end, I come out ahead 2400. Okay, so maybe things aren't so bad. Maybe this is just the nature of my business. Maybe I really have my great months. That helps support, you know, the rest of year. So then, you know these months will help carry, you know, the January February march is of next year. So but let's think about So here's where you would start to look. You go. OK? Well, first of all, are are my numbers correct? Like that, I really believe Are these proper fork you always want to be conservative to You don't want to be, you know, change numbers just for the sake of making these numbers look pretty. So, um we say Okay, Are these numbers correct? And you would kind of go through and you know, Well, yeah, and no. Everything looks good, and hopefully you're honest with your inventory rants. Good. You know, you're not moving into a cheaper building, maybe rings going up, and you should need not just these a little bit, uh or so. Ok, so you're looking okay? No, These numbers airfare. Like, I believe this is how my business gonna run over the course of the year. All right, so, Well, problem number one, we have three negative months. So you then you have to ask yourself, what, do I have money in the bank now? So maybe you have, you know, 1000 in the bank. Well, 1000 will certainly get you through these three months where you're losing money. So one thing I would encourage you to do is first of all, just look at the year. So for the year it says we have 20 almost $2500 in profit. We sell 686,400. Sorry. We spend 3900 we come out ahead 2400. That's not bad. I mean, that's a good problem. You know, you're making $2500 off of 6400 in sales, so that's actually not too bad of a business. So OK, so as a whole, the business is healthy. You know, you're turning a profit. It's just a bit of an up and down. So then it's like, OK, so what do we do? Well, first of all, do we have money in the bank already to cover these three bad months and that question? You know, it's yes or no how close it is that something you're after determined. So say you do have money, but you don't have a lot, Let's say And here's a little tip. If you highlight cells, multiple numbers and excel and look down here, it'll give you some data. So tells us the Summit's $137 Those three. There's three numbers and averages 46. So the total of those three numbers 137. So let's say you have 200 in the bank. Well, you know, you're covered and you got a bit of space, so you might be okay. And then you kind of get to a few break even months, then you take another hit. So that's something that considers Well, it's not like you really recoup anything here. And then all of a sudden you take a pretty big hip, And I think part of it was that business sliced. We had taxes, we had travel. So then you start to ask yourself, Well, can I afford to go to that conference for the Beanie Babies? So this is where you start doing the analysis of your budget and seeing, you know, maybe there are places you could cut back, but nonetheless so we look at it, we say, OK, yes. We have enough to get us through. Let's say yes, we have enough even against through here. Say we have $1000 for so we're not worried about were like, Oh, no, we're fine. We see that here, you know, is minus 2 12 were covered up to their but then going forward after that. Hey, we're on run easy street a little bit, you know, we have $200 a month. 100 here to 45 another 100 here. Almost eso things should be Okay, I'm gonna go ahead, sit save before you know what? I'm kind of curious. This doesn't quite add up to me. Now that I look at it, something seems off. And the reason I say that is because we have a lot of losing months. Then we have some winning months, but somehow we make 2400 at the end of the year. But how do we make 2400 when this total is probably a lot less? This total is only 4 13 So, uh huh we have an error. Was starting to think that. So let's see here. So this equals this and this is honestly a good exercise because it's troubleshooting. Okay, so that's formula is correct. It's taking our sales less that. Let's see if this is correct. That's where you just go through and start checking, saying formula. So that's correct. Are these corrects those aircraft? That is a problem. Ah, so we used auto some auto someday get us in trouble. Although some didn't add us across here, it just added the two numbers right above it. So we need to fix that right away and sorry for the, um, distraction But at the same time, I think this is a good exercise, you know, in doing that reality check. Yeah, we were ready to plow ahead because we had 2400 and profit. But once I started talking about these numbers, it just didn't seem to quite add up. OK, so we're actually not quite as great as we think. Now, let's just double check these. I want to make sure all they should say some. See toe end. Um, and I'm just gonna narrow down and kind of look at the formulas. Only when I suspect will be bad would be this one. And it's not that one's correct. That was correct. Now, another way. We could do this. We could just highlight all these cells in this data and look down here. There some 39123912 I'm gonna do it for this is well, just to be extra careful. Okay, that total is for 3 to 5. That tolls for 3 to 5. Perfect. Okay, so we didn't make as much money as we thought. We still made roughly 10% profit. You know, we've had sales of 4300 we made 413 in that profit. The business isn't necessarily Oh, it's obviously doing worse than we thought it was, but, hey, we're still turning a profit. But it does add a lot of color to this now. So now you know. Is it likely we had 1000 or 2000 bank? Probably not. You know, maybe last year we did make 400 or 300 maybe we have that and we can ride this out. But you know this, you know, including the 82. You know, we're looking at July before we really start making money. Like the first part of the year is just not a money maker. We lose 212 so we lose to 12. But then at the end of the year, we have 4 13 so basically make up $400. Here. It looks like our story. $600? Yes, for a net of roughly 400. So So that's our business model. In this case, we the first part of the air would lose money the last half of the year. We really make it up. So the question would be at the end of last year. Did we make enough to cover this six months and get us through? So and then that's where you can also then go and start making decisions. Do you need to go to this conference? Do you need to go to that conference? Um, did you need to spend marketing here? Is it worthwhile to drive these sales from these might seem like minor expenses, but at the same time, every little bit adds up. You know, relatively $10 compared to 65 in total, not a ton, but it chips away at up. Um, some things you can't change. Not like you can easily change your rent. You could cut back on office expenses. Employees possibly can change that. Maybe in the slow seasons, you do like work with a lighter ship. So there's lots of options. And I guess the point of this is that it's really gonna vary based on your business. And you can see now, um, one how to hunt down an error That looks pretty obvious. Once we thought about it and to really now start using this information. So I mean, we went through and built this thing and I'm really proud of this, and it looks great. But it is using this information to make business decisions. That's really important now, and that's that's where the value in all of this is. So I'm gonna cut this video off. It's a little bit longer. I think we've done everything we kind of need to do with this. What I do want to do, though, is build our summary tab in the next video. 14. Summary Tab Setup: All right, everybody. So, first of all, if you're if you're happy with this and you don't really feel like you need a summary of it , I mean, certainly this isn't that big. I mean, it's not that detail, but say you did have, like, 50 categories here where he had 20 different products. You might want to do something with those in summary version. So if you don't feel you need to certainly skipped this video. Um, but what I like to do is basically just take this and make a nice summary version of it. Um, so in this case is a little bit difficult, because there's only so much we can summarize. I mean, I think what we're gonna do is maybe summarize our income in cash, so we'll just have our total. We're also gonna have our, um, maybe our big ticket items. So we're gonna have a line for inventory. We're gonna have rent off. We're gonna have kind of these, you know, rant, office payroll type of operational costs group. And we're gonna have everything else group just so we can see. So here, You know, we have a lot of numbers and again imagine there's 2030 lines there will have a nice category. Some, um, what we can do. And what will also do is I'm thinking maybe Dubai Quarter, So it's gonna take us a little bit of work to make that happen, but not too bad. And, hey, you learn a bit more excel. So first of all, you know, I really like the format of this, so I don't need toe, you know, I don't really want to have to recreate everything. So what I'm gonna do, first of all, So I'm just gonna copy these 33 columns, and then we're gonna edit them over there. So if I hit control C here, go to this tab, hit up here in the corner and hit Control V. Um, the reason you do that is that then it includes automatically the formatting and the column with etcetera. So this is a little bit messy, but it saves us putting in a lot of names and lines. And now we can use that format painter to really help us out. So first things I'm gonna go quarter 1234 and a total. That's all I want. So Q one. So Q one is general favorite March. Cute too. Q three que for and let's see. And then we're gonna format this up in a second. Um, this tote, this formula, honestly is probably correct. Like that will work. So I'm gonna copy this across. Um, let's see. So we said we just wanted the total, so we're just going to say total income in cash. We don't need all this detail. Um, so it's going to delete these out honestly and again, this is just a nice little summary. It's nothing to do with. So that formula is broken right now. Um, let's just delete it. So all these numbers, all these formulas are gonna link back to that original sheet. I'll show you how we do that once we get to it. For now, let's just build. It s Let's just delete out these numbers to start with, um, this will be total. That and that'll be that. Subtract that. Okay, so we just said this is gonna be so we're going to keep our inventory. Then we said we're gonna have, um, sort of operational expenses, if you will. Or even you could even write like rand office, payroll health. I was gonna call them operational expenses, which is those four. Then we're gonna have other expenses. That's all it's gonna be. And you'll kind of see why we're doing this in a second. It's nice to have just a nice summary. Um, you know, thing to look at and you can really pick out the big ticket items in total outgoing cash net cash. So this could be a nice little just tight little box. You know, Maybe that's what you show investors or something. So first of all, let's do this. Let's do a little formatting. Let's bold this and we're gonna go back quicker with this just cause we've gone through this already on the main sheet, we want this to go all the way across. I think we wanted a total A swell Um, sure. Let's include a total. So let's just put this total bold. Um, well, certainly do our line down the side. And again, this is so in the rial like when you're maybe not teaching this, you're just kind of doing it. This is more how this would go. You just kind of quickly go through and you can see how quick it could become toe. Actually, build a budget, actually put one down on the right side, which we didn't do on the other side. Um, other sheet. But that's OK. We want this, um, double outline and the green like their green. We like this formula. So sometimes, you know, you need to think about things And, um if it if it will work or not, we actually want the formatting for this as well. But we don't want Is that formatting in this cell. So you kind of have to make a choice. Do you copy the format for this and then fix the lines, or do you just reformat everything? I think I'm just gonna hit the dollar sign and two clicks and then it's done. Same thing here. Let's just do this. Let's go with our bottom. Let's go with their top. Ah, we want the formula. And certainly we could have just rewrote the formulas as well. That would have worked. And then we want to format everything as dollars click, click as well. These will also all be dollars. Ah, college dollars. Click click. Does he have the dollar signing two clicks on the decibel move. So let's just four minute now before you even start. We kind of an empty space here. I'm gonna delete this row so you can see how quickly it is to hoops. I had inserts, So let's just, uh I'm gonna highlight two rows here. Now you can hit delete here. Let's just do it since we're here Or you could right click is what I had did and delete. So we're up to about five minutes now. I'm just trying to think so before we start creating formulas to bring numbers over, um, that's it. You know what I might do? The only other thing. I'm gonna insert two rows here, just create some space. I'm gonna put, you know, summary cash flow budget, and I'm gonna bold it. Hit control, be there. It's gonna make the font a bit bigger. And the way you do that is you just dropped down the fonts. Oops. I didn't want to that, but, um, that actually increased the front one size for some. Just gonna go that I'm gonna pick this 14. One thing we didn't do here. You do the same thing here. Give it a name. Um, if you like my tended like to do that, though for summaries and then format wise, I'm gonna put that line just all the way down And this just cosmetics, and I'm gonna make sure there's a line all the ways around this which is outside borders. There we go. So I like how this looks. Now, we'll get some numbers in here and have a nice little summary. Okay, so we'll cut this video off, and then let's link up this with some formulas. 15. Summary Tab Formulas: Okay, guys. So hate and all that's left on here said to link this up. So, um, it's gonna take a little bit. Ah, thinking. Though I think once we get over the hurdle, though, you'll get it. So first of all, remember these air quarters, So that's gonna be January. February. March is total here, etcetera. So we can't just directly linked to a cell cause we don't have a total honor. Other sheet, that is January Fair in March. But what we can do is write a formula that grabs those three. So we want the total income and calf for those three months. Here's what I'm gonna do. I'm gonna click here and hit the equal sign. Type the word some gonna open my bracket. Now, what I'm gonna do is click on this sheet and you can certainly do this in Excel. You can link to other sheets and write formulas off of other sheets. So now we're gonna click over here and we want to highlight the total cash for January. February March is gonna highlight these three. I'm gonna hit enter and to see what happens. The formula now says some, so rather just say some C 77 says some detailed budget exclamation point. So it's basically telling Excel, Hey, first of all, go to the detailed budget tab, then add up these cells on that tab. That's all it's doing now. Unfortunately, can't just copy paste this here because it will, only it won't grab the correct cells. Um, so we could either do a few things, so we know that. See, um C d e r January February March We could just type this formula again, but do, um ah, starting with f f g h or we could just do what we just did. So I tend to be a favor of just just doing it. It tends seems to be quicker than trying to type it out. So let's just do it. So we're gonna do a little bit of manual entry here and again. We're is going to kind of go quick with it. I think you get the point, and and if you don't want you toe to go back and watch the video, So here we're gonna grab August September October for ropes round months. Got it, See? A This is a trick. You have to make sure you grab the right months. And what we're also gonna do is verify. We'll make sure these totals Altai how to the other sheet? Because you can see how easy it would be possibly grabbed the wrong number. Okay. And that's these three months. So our total at the end should be for 3 to 5. So this let's just use our auto sums. That's that works pretty handy for 3 to 5. Perfect. So we grabbed all the right numbers. Okay, Now this one gets even a little bit more fun because remember, inventory in goods? Well, it was its own line item, but this was like a group of expenses. Let's just start with this one. First of all, equals sum and inventory in good. So it's on Lee this line. So that's our biggest sort of expense. If you will. Let's just do it for these. They permit June. Oops, sorry for the may be a bit of board. I'm watching this. It's kind of one of those necessary evils in excel listeningto hand type sometimes, okay. And our total should be 14 42 again. Let's use our auto some and we're not going to put those in here yet just because And we need to be careful. Remember on that other sheet that added above it instead of across, Um, but that number ties out, so this will be interested. So operational expenses, we decide, was a bunch of things. But that's OK, so let's just do equal some the bracket and it's a simple it's just grabbing. Also rather, in describing a single roll, we're gonna grab a block. So it was rent office payroll. Health insurance was going to be our ah, So those four items were gonna be our what's included, and we do it for those months. It's gonna add all these together now and you see the way it right side is some detailed budget C 12 to E 15 since faces saying, From this corner to this corner and everything in between, let's do the same. And actually, yeah, let's just finish those and then we'll just to be consistent. So now and let's be careful. So it's gonna April May June and it's gonna be these four numbers. Okay, then let's do. And we could actually do some cool analytics with this. I'm gonna show you once we get done here. And as you can tell, it doesn't want to get started. Doesn't take too too long toe to put these numbers in. And these formulas okay, almost there. These four. And then we'll put in the sums after Let's do Ah, let's just do these. So this has got scroll down. Will be travel and everything below. Oops, just for those three months. So okay, and you see what a big difference. Like that's a lot of categories, but it's only $60 expense now, and we kind of this thing hanging over here. Someone's going to start down here, go up to here. Okay? And again, we'll check our totals on both these lines. When we get a second. We want July, and we want it up to here. And then, lastly, we want this quarter. And then we wanted to hear three months. Okay, so let's try our out of some. Let's just do this. Auto some? Yep. Now auto some? No, that's the wrong wrong lot of some. So I think if we just click here, it'll think we can fix it ourselves. Perfect. That's all I needed to do it on the other sheet. I just didn't I was obviously put it into quick. So this total is that? And 4/13. Let's just double check these. 4 13 and 391239124 13. Perfect. Those totals match. So our little summary works. Terrific. So what can we glean from this? Well, just comparing the two visually, there's a lot of data, you know? You have to scroll down. You know, maybe you run the store, but you're owner just wants to see something simple like this, you know, Show me the punch line. And then they could look at this and I go, Wow. You know, a big portion of our expenses is inventory. So something else you could do with this we're at about the five minute mark. Actually, let's cut this video often that I'm going to show you just a few things you could do with this to make it a little bit more exciting. Ah, for for somebody or for yourself? 16. Summary Tab Analysis: All right. So let's take a look at this and just give you a few ideas on how you could use these numbers. So first of all, we have a nice summary here. Um, you know, looking back at the detailed budget. I mean, not that it's too overwhelming, but there's a lot of a lot of detail in here when you come to the summary. It's nice to see Can kind of look at your income in cash and see that that increase and really see it take off and quarter for I'm same thing with your inventory. Then that goes up. And that makes sense. Ah, your operational expenses. They make up a big part of your total expenses. We're actually gonna put in some percentages here really quick. Um, so you could start to look at this and you also see them the negative cash flow. The first quarter, it starts to get better. You kind of fixed Q two with Q three and then Q for Israel, your money maker. So let's I'm gonna put in some percentages here just to put somewhere color on it. So I'm gonna hit the percentage. Um, I'm gonna highlight this whole Rhona hit percentage just to make these all percentages, and we're not gonna make it to fancy. I'm not gonna put in a lot of formatting. Just want to see some numbers. So first of all, the first thing I like to see is my my profit margin, if you will. So how much did I make relative like net profit versus how much I sold. So and all that is, this equals that number, and it's gonna be divided by which is the forward slash that number. And there we go. So we made 10% net profit. We could just call this net profit percentage that Rex. So the other thing I like to look at it like to look at my expenses relative to the total expense. I just you know, I can kind of eyeball it here, and I see that's the biggest one. But I want I want no percentage wise, that just sort of adds a bit of information. So all that is going to be that number divided by the total. Unfortunately, we can't copy these down because we need this number to stay sort stagnant. There is away in excel to do that in the formula, but I don't want to overwhelm me with two too much excel. And since we only have three numbers here, weaken, type the formula as quick as I can explain it. So there we go. I'm gonna hit the save button. So basically, this category is 37% of our expenses. Ah, this cargo is 55%. And this was only nine. So then we think, OK, well, what was included operational? That's making this, like, more than half of our expense. Let's go back and look. All right, So, operational was these four items here. Let's just highlight them. Just ah, to try. And so what do we have? What? We have big things like payroll expense. All right, that makes sense. Health insurance, rent, office. So these are all the big numbers. I mean, we can visually see that we didn't have a lot of expenses for these other things. So, um, so that's where you have to Then come and make decisions like, did you know, Do you really need to spend as much on payroll? Um, is there a way to get cheaper rent, etcetera? So again, those choice. I mean, this is completely fictional numbers, but they kind of played out like I think a real business would. You know, you have your slow months, and then they pick up in the in the faster months. So, um, this type of analysis, and certainly there's lots of different ways to slice this and look at it. Um, you could run these percentages on your detailed. If you want, you could look at revenue is a total of total revenue and see how much each product contributes. You could look at each expense item. You might drive yourself nuts, just trying to pick apart each and every number. But that's part of why I like this nice summary tab. You can just go by categories and pick out the big categories and then work within those. So that's it. In terms of analysis of your summary tab, 17. Course Conclusion: All right, everybody. That's it. Hey, are detailed. Budget are summary are built and done, so ah, few final things. So I'm gonna upload this you'll be able to download, and it's gonna be attached to this lecture. So ah, look, to be able to download this file, it's part of this lecture. Um, I think I'm just gonna leave this exactly how it is. I'm not gonna change anything. So if you've watched all the videos, this is what you see on the screen right now is what you're gonna get. So what I would encourage you to do is if you've built your own amazing encourage you to do that. If you want to use this template. Certainly do. So all you're gonna have to do is go in, you know, highlight these numbers to lead him out and just add in categories. So whether it's incoming, outgoing cash and it should be a simple is that definitely take care here is well, I mean, as you, you know, start adding in maybe line items or deleting things, you're really gonna want to watch this. Don't just take this for granted, because the formulas could easily get you know, messed up or, you know, you include something in maybe include a second inventory line here, but then it's ah, you know, it's obviously not included with this one, and, you know, they're in different categories over here. So I really encourage you to be careful and definitely make sure you link this stuff properly. If you do indeed use it if you only end up using this terrific as well. So that's it, Uh, love teaching of the course. I love doing stuff for Excel and for entrepreneurs and for start ups and small businesses. Um, if you have any questions or had any questions definitely sending a message to the website . Happy to answer those a swell love your feedback. So after the course, if you're prompted or if you just go to your dashboard if you give me feedback for the course you know, love anything I can do to help you get all those stars from you. Ah, five star reviews. Get your feedback on there as well. Let me know if you had any problems with the course, and that is about it. And last thing I'm gonna courage you check out all my other courses. I have a lot, Of course, is up. Um, you all related to sort of accounting finance? Small business entrepreneurship. So there might be something else they're of interest to You definitely encourage you to check that out. So I've enjoyed being instructor and hope to be your instructor on a future course. Thanks so much, everybody.