Net Revenue forecasting

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malvolio replied

26 April 2015, 09:00
IT's not rocket science. For a rough estimate:

(((day rate) x (expected no of days worked per year)) - (likely expenses)) * 80%) will get you in the ball park. Or even simpler, assume net 70% of your gross and any more would be a bonus.
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Andrew@Wisteria replied

26 April 2015, 07:47
Originally posted by PerfectStorm View Post

Could you use the Nixon Williams takehome calculator and plug different rates into it? If you select the option to see more info it will show you some of the working too.

This will be fine for what you need. From memory it doesn't account for profits that you don't draw that would send you into higher rate tax - but that's an extra complication for your accountant
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jonniu replied

25 April 2015, 17:32
Originally posted by PerfectStorm View Post

Could you use the Nixon Williams takehome calculator and plug different rates into it? If you select the option to see more info it will show you some of the working too.

Oh I've never heard of that. I'll give it a whirl. Thank you for your help
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PerfectStorm replied

25 April 2015, 17:23
Could you use the Nixon Williams takehome calculator and plug different rates into it? If you select the option to see more info it will show you some of the working too.
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jonniu replied

25 April 2015, 16:43
Thanks for your helpful post
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nozmeister replied

25 April 2015, 13:05
Lol. If you can't work that out then how can you have any sort of grip on your company finances?
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jonniu started a topic Net Revenue forecasting

25 April 2015, 09:26
Net Revenue forecasting

Hi All,

I'm wondering if someone can help me out with a question I have. I'm trying to put together a basic and very 'crude' formula to enable me to do some revenue calculation comparisons.

Basically I want a spreadsheet with a different daily rate in each column, number of days worked in a month and VAT applied etc. I then want a formula to calculate my annual revenue (with some assumption on number of days worked over the year etc) and I want to apply a very basic formula to calculate the income net of tax (all tax - capital gains, income, VAT). But I'm not looking for a comprehensive set of calculations (I'll let my accountant do that for me). I'm looking for a very crude formula (like somewhere between 20 - 35% maybe?) to enable me to do some revenue forecasting and also some 'what if' analysis based on different business development options and different possible rates of pay being earned.

I hope my question is clear enough for people to answer but please advise if further clarification is required.

Thanks in advance for my replies

jonniu
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