how do I prepare an earnings forecast

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wendy.j

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Post by wendy.j » Wed Jun 13, 2007 1:40 pm
Please could someone tell me how do I prepare an earnings forecast for my self employed husband to send to the nominee team, thankyou wendy
 
 

ray_a

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Post by ray_a » Wed Jun 13, 2007 2:44 pm
Hi Wendy

I am sure you will get many ideas on this forum.

Basically it works like this:-

Income
Self emplyment
Your income
Any other income

Expenditure
Business expenses
Materials, Labour, travelling, motor exps, Telephone, stationery,postage, cleaning, rent,rates, insurance, anyother expenses Look at the accounts you may have used for the Inland Revenue

Household items

Food, TV licence, Council Tax, Water Rates, home Telephone, Mobile, Schooling for the children, home insurance, mortgage/rent,Utilities, repairs, and a level of contingency.

Hope this helps.
 
 

wendy.j

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Post by wendy.j » Thu Jun 14, 2007 10:00 am
Thanks Ray, so basically it will be just the same as the normal accounts but I have to estimate the totals for next year?
This is all so confusing for me and I have put off sending everything to Grant Thornton for about a month because I dont really know what I am doing or really if I should be doing it at all. I am going to send off what I have today and just wait for them to tell me what I havn't done correctly. I dont like dealing with a company so far away but they are the ones cccs referred me to because of being selfemployed. Thanks again, Wendy
 
 

Oliver

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Post by Oliver » Thu Jun 14, 2007 10:16 am
I agree with the posts above but if you are unsure what Grant Thornton want from you why not give them a call. They may even have a future tradings spread sheet which they can forward to you.

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Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp
Best Regards
Oliver
 
 

wendy.j

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Post by wendy.j » Thu Jun 14, 2007 8:15 pm
Thankyou, I have given everything to the accountant to do and hopefully I can post it all off asap next week, cheers wendy
 
 

MelanieGiles

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Post by MelanieGiles » Thu Jun 14, 2007 10:04 pm
Hi Wendy

The easiest way is to take your husband's last couple of years accounts and identify his income streams and the expenditure he regularly incurs. I would look at the last 3 years to see if there is a pattern.

You should then, using those same headings, put together a spreadsheet estimating the monthly income and expenditure you can forsee over the next year. Don't be over optimistic, and provide for bad months as well as good ones.

Grant Thornton will be able to help you with this if you are struggling. I regularly put togther trading projections for my own clients, but the input and forecasts must come from you directly.

And when you have got the knack of putting this first year together, make sure you use this as a basis for monitoring the profitability of the business in the future. Trust me - it gets addictive!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

ray_a

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Post by ray_a » Fri Jun 15, 2007 10:06 am
Hi Wendy

Hope you find the advice useful.

I wouldn't worry to much as accountants love playing with figures anyway and we understand the problems of non accountants putting figures together in the first place.

In any case it is at this stage a discussion draft and Grant Thornton will make suggestions as well.

Melanie is right about it being addictive.

I have developed a financial model which brings in my income less expenses and projected balances so I can see where I am going!

Good Luck

Ray
 
 

wendy.j

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Post by wendy.j » Sat Jun 16, 2007 10:17 am
A very big thankyou to both of you, I think I now have it sorted. I don't hold much hope of the IVA being accepted but I will let you know in as many weeks as it takes, thankyou again Wendy
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