Completing your Easy - Cash-Flow form
Below you will find help on the sales section of your Easy Cash-Flow
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Below you will find help on the sales section of your Easy Cash-Flow
Items/services/groups
Step 1
In the Sales section of your cash-flow form list up to 4 items/services or groups of the things you sell.
Add a name for each. (If don’t sell 4 items/services then no worries just list the ones you do sell.)
To help lets look at a couple of examples:
list of 4 individual services
Construction business:
List of items organised in groups
Restaurant:
Men’s Clothes Shop
Have a think about what you sell and how you might list what you sell so it fits in to no more than 4 groups, if you group items but have difficulty sticking to 4 groups try and combine groups or have say 3 groups and then everything else in the final group named ‘Other’.
Average Selling Price
Step 2
After creating your list we need the average selling price for each item/service or group.
If you have grouped items total the selling price for all the items in the group and divide by how many items there are to give an average selling price.
Its easy if you have 1 product/service for each of the 1-4 listed as you just use the selling price for each.
Using the clothes example lets work out the selling price for the group shirts:
So the average selling price for the group Shirts is calculated at £139.96/4 = £34.99
Working out your cost of sales
Step 3
Using the list you created previously for your sales items/services or groups (1-4), next we need your cost of sales for each.
Note:
If you have grouped items, similar to the example we showed for the men’s clothing store, you will need to average out the cost of sale for the group. Do this in the same way shown when working out the average sale price, by adding up each item in the group’s individual cost of sale and then dividing the total by the number of items (see below example)
Services
For services where costs and sale prices might vary ie each job would be different do you best to give an average sale price and cost based on your experience (we just need a guide on your sales figures)
Using the clothes example lets work out the cost of sale for the group shirts.
This it what it costs for each shirt to buy from the supplier including shipping:
So the average cost of sale for the shirt group is calculated at £99.96/4 = £24.99
12 Month Sales
Step 4
The last thing we need to complete the sales section is an idea of month by month how many of each item/service / group you will sell each month.
Add monthly sales numbers for each of the 1-4 named products/services or groups you have listed in the previous section.
When entering your projections think how you will be generating sales, consider seasonality effects, suppliers you use, if you are making the goods you sell think on material supply, staffing needs etc to meet any increase in production needed to meet you sales projections.
