EXPLANATION OF CATEGORIES
CASH TO BE PAID OUT WORKSHEET
			
1.  START-UP COSTS
These are the costs incurred by you to get your business underway.  They are generally one-time expenses and are capitalized for tax purposes

2.  INVENTORY PURCHASES
Cash to be spent during the period on items intended for resale.  If you purchase manufactured products, this includes the cash outlay for those purchases.  If you are the manufacturer, include labor and materials on units to be produced. (If you have no product, delete the category rows and enter a zero for the inventory total.)  

3.  VARIABLE EXPENSES (Selling or Direct Expenses)
The costs of all expenses that will relate directly to your product or service (other than manufacturing costs or purchase price of inventory.)

4.  FIXED EXPENSES (Administrative or Indirect Expenses)
Include all expected costs of office overhead.  If certain bills must be paid ahead, include total cash outlay even if covered period extends into the next year.

5.   ASSETS (Long-Term Purchases)
Costs of the capital assets that will be depreciated over a period of years (land, buildings, vehicles, equipment). Determine how you intend to pay for them and include all cash to be paid out in the current  period. 
Note: Land is the only asset that does not depreciate and will be listed at cost.

6.   LIABILITIES
What are the payments you expect to have to make to retire any debts or loans?  Do you have any Accounts Payable as you begin the new year?  You will need to determine the amount of cash outlay that needs to be paid in the current year.  

7.   OWNER EQUITY
This item is frequently overlooked in planning cash flow.  If you, as the business owner, will need a draw of $2,000 per month to live on, you must plan for $24,000 cash flowing out of your business. Failure to plan for it will result in a cash flow shortage and may cause your business to fail.
Note: Be sure to use the same time period throughout your worksheet.

* Variable & Fixed Expense Categories & Inventory Categories Must be Determined here:
Every business has expenses that are specific to its industry. Customize inventory expense categories and variable and fixed expense categories to match your business. The headings in our Example will get you started. You will type in your own headings in the working spreadsheets. As you begin to operate your business, you will be better able to determine what your true expenditures are. However, for your business plan, you will need to set your expense headings beginning with this worksheet and use the same ones throughout your spreadsheets.  You can change later if your current categories do not meet your needs.