Plan of businesses (Part 7): The study of the income and debits

After the study of the investment and financing, the following part or section of a plan of businesses is the study of the income and debits, which indicate to the future income and debits of the business for the period of time in which the plan of businesses is projected.

The objective of the part of the study of the income and debits is the one to show the reader the projections of the income and debits that the business will obtain, as well as the relation that will occur between these.

The part of the study of the income and debits would have to contain the following elements:

Budgets of income

In this point we developed the budgets of income for the period of time in which we are going to project the plan of businesses.

The time in which the business plan will be projected will depend on the objectives of the plan of businesses and the type of business that we are going to realize; the usual thing is to do a projection of 3 to 5 years, realizing monthly projections for the first 12 months, and soon annual projections for the following 2, 3 or 4 years.

Unless other types of entrance do not exist, the budgets of income basically will be conformed by the following budgets:

• Budget of sales
• Budget of collections

Something that to stand out is that to elaborate the budget of sales we must be guided of the prognosis of the demand that we have developed in the part of the market study.

Budgets of debits

In this point we developed the budgets of debits for the same period of time in which we have projected the income.

The budgets of debits basically are the following:

In a producing company:

• Budget of production
• Budget of requirement of raw material
• Budget of purchase of raw material
• Budget of payment of raw material
• Budget of direct manpower
• Budget of indirect expenses of manufacture
• Budget of production costs
• Budget of administrative expenses
• Budget of expenses of sales
• Depreciation
• Amortization of intangible
• Budget of the payment of the debt

In a marketing company (dedicated to the purchase and product sale):

• Budget of purchases
• Budget of payments
• Budget of administrative expenses
• Budget of expenses of sales
• Depreciation
• Amortization of intangible
• Budget of the payment of the debt

Point of balance

In this point we found the point of balance of the business, that is to say, the point of activity where the income (the sales) are equal to the debits.

Projected flow of box

In this point we developed to the projected flow of box or budget of cash.

State of gains and losses projected

In this point we developed to the state of gains and losses projected or operative budget.

Projected General balance sheet

And, finally, in this point we developed the projected balance.

Soon we will be including a model of plan of businesses where we will show to an example of the development of this part of the study of the income and debits.