Business Plan Accounting Data

The CAPACITY model follows standard accounting reporting terminology and formats for the sector. See the "Input Definitions" page as required. CAPACITY requires the input of at least one year's "historical data" to provide the basis for the projections. As far as the model is concerned this does not need to be based on audited accounts, which may not always be possible because of timing issues. It is quite feasible to base the year zero historical data on, say, twelve months' management accounts or 9 months' management accounts plus 3 months' budget figures. In other words, the last audited accounts would be year -1.

Note that, when entering historical data into this sheet the user has to make sure that both the Balance Sheet and the Cash Flow Statement balance. This sheet is not, and cannot be, a dynamic, self-balancing model. The input sheet will simply provide automatic sub-totals and indicate if there is an imbalance, to prompt correction by the inputter.

When entering forecast data for use in “reconciliation mode”, the Balance Sheets and the Cash Flow Statements must once again balance. Retained surplus after tax should also reconcile with the balance sheet change in retained surplus. Finally, aside from any non-cash adjustments, cash flow items should reconcile with changes in the corresponding balance sheet items. If any of the forecast data requirements are not met this will result in unnecessary reconciliation factors.

When entering cash flow data from an association’s own business plan the capital investment in years 28-30 should ideally exclude any business developments or disposals, since this will adversely affect the multi-period cash flow measures of capacity.