The fixed expenditure of a business is much easier than sales to work out. The Fixed Expenditure Screen of Cash Flow Forecaster indicates the different types of fixed expenditure available which will help you build up to the total. Work out the biggest expenses first e.g. Salaries Rent etc. Determine which ones are vatable and which are not.
Once you have the correct Fixed Expenditure the system will tell you the break even Turnover I.e. the Turnover required before the business can make a profit. This you will find on the ratio screen.
How to input Variable Expenses
These are expenses input as a percentage of total sales E.g. If your business pays commission as a percentage of sales input the percentage in the Variable Expenditure Input.
In many instances it may be necessary to use the variable expenditure screen to enter the actual amounts of expenditure instead of using the percentage expenditure option as the accuracy of the expenditure could be affected.
