If you’re projecting manually, be prepared to calculate the Cost of Goods Sold (COGS). This number contains three pieces:
- Material: What percentage of each dollar pays for the cost of product(s)? If you’re a service company, enter the associated materials costs.
- Labor: What percentage of each dollar is tied to the employee costs associated with goods production?
- Other: What percentage of each dollar goes into other costs?
You have the same two choices when you're entering your expenses. You can enter them manually or use the Expenses Projection Wizard. If you do the latter, your projections can be based on either the last 12 months of history or an average from the last 12 months.
In the Interview section, you’ll need to have numbers available, including:
- Beginning account balances
- Assets you own or need to buy
- Cash available to invest (if applicable)
- Amortization and depreciation