‣ Finance :
Financial reporting is crucial as it will : � Measure the financial performance and establish future planning . �
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Indicate the social start up ‟ s strengths and weaknesses so the participants can capitalise on the strengths and correct the weaknesses .
Form the base on which the participants can forecast and monitor progress . Forecasting is critical as the cost of increasing sales will happen before they actually make the sales !
Provide the performance information required by themembers and / or sponsors . The participants will have to demonstrate to them that their investment in the social start-up was a wise decision .
� Indicate how financially healthy thesocial start up is !
The most important financial tools are the Cash Flow , Cost Benefit Analysis , Break Even Analysis , Operational Gearing , and Pricing . These are presented in the rest of this section .
� Cash Flow
This is a record of all actual and forecasted costs , expenses and receipts . It is really important to begin with a Cash Flow statement that forecasts costs / expenses , receipts and income for the duration of the Social Start-Up Training Programme . Later in the programme , the participants can expand the Cash Flow statement to forecast the 12 months after the spin-off phase .
Encourage the participants to search for free dynamic and other Cash Flow templates on the internetso they can find one that suits the best . For convenience , an Excel dynamic cashflow template is available through this programme for the participants ‟ use . When completing the Cash Flow forecast , please remind the participants to be as realistic as possible and consistently detailed . To begin with , ensure that theyinsert all known and regular payments ( if any ) such as monthly wages , rent , insurance etc over the next six months .
If there is a computer and overhead projector available , then please share the EXCEL Cashflow template with the participants now so they can start populating it .
Please ensure that you give a copy of the EXCEL file to the participants , especially those responsible for the social start up ’ s financial planning and documentation .
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