Retailers: Need Answers for Decisions Like These?
Find out for yourself - in minutes! - without having to ask your accountant or bookkeeper!
Use The ROI's 3-in-1 INTEGRATED Cash Flow Calculator - an online calculator specifically for retailers who want to know "What would happen if I...?"
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Go here to use the 3-in-1 INTEGRATED Cash Flow Calculator.
Quick for Retailers to Use and Understand.
Gain peace of mind. Face the future with confidence!
This online 3-in-1 INTEGRATED Calculator enables any retailer, anywhere, to quickly generate a profit plan (budget) for the year, plus an Open-to-Buy plan plus the resulting cash flow projection! All from the same few inputs!
What does this mean?
When you are pulling together your profit plan (budget), use the 3-in-1 INTEGRATED Calculator.
With the same few entries for planned sales, margins and expenses, you'll get a projected P&L. Plus much more!
You also will get a monthly inventory buying ("Open-to-Buy") plan based on your goals for sales, margins, and inventory turns.
Plus, you also get the resulting integrated cash flow projection. See whether you will be able to pay your bills on time!
Hmm. Don't like that would turn out? Try some "what if...?" changes. All on your own.
It's a complete, integrated financial plan, exclusively for retailers. Online, 24/7, only at The ROI. Go here. Get access now.
Will this save my plans?
The 3-in-1 Calculator works "in the browser.” That means your entries will be retained indefinitely in the browser you used for input (e.g., Firefox, Chrome, Safari, Edge), subject to your settings for clearing its history. No more worries if you are interrupted while working with it.
When you resume, just use the same browser and device, and your plans will be there!
Once you have developed a plan you like, the best way to “save” it is to just print out a hard copy for reference. Do that by using the “PRINT ALL“ button. In fact, depending on your computer and/or browser, you may be able to simply email a pdf copy of the plan.
Then, as you receive the monthly results from your accounting package and POS system, you can easily compare these "actuals" to your plan.
What about "updating" your plans?
The ROI's calculators are for projecting, not accounting.
For many retailers, preparing a plan once per quarter that looks ahead to the next 12 months is a good schedule. (Of course, if business conditions change dramatically, or an appealing opportunity arises, those situations would warrant some new "what if...?" thinking.)
To develop an updated plan, reset the starting month, and then simply enter your current best estimates for sales, margins, expenses, etc, for the next 12 months.
And that's it! The 3-in-1 Calculator immediately generates a new integrated plan for the next 12 months. Of course, you can consider various tweaks and adjustments to that plan; it is called the "What if...?" Calculator for a reason!
Go here. Get access now!
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"
MONTHS - Start with any month of a 12 month period.
Select your Start month from the drop-down menu. It will be displayed on all screens.
Estimated SALES - Enter @Retail, without sales tax.
Round all entries to the thousands. Examples: $42,385.22 becomes 42.4; $5,787.92 becomes 5.8; $385.33 becomes 0.4
GROSS MARGIN % - Enter estimated Gross Margin (Gross Profit) percent for each month of the 12 month period.
Enter maintained margin, after markdowns. Can be up to one decimal place (tenths of percent).
Examples: Enter 44, becomes 44.0%; enter 38.5, becomes 38.5%
EXPENSES - The Calculator needs just one entry for each expense "bucket".
Variable expenses are entered as a percent of sales. Use whole numbers to one decimal place
Examples: Enter 12.5, becomes 12.5%; enter 10, becomes 10%
Fixed expenses are a flat $ amount for each month. (Take totals for the year and divide by 12 to get an estimate of yours.) Round all $ entries to nearest thousand.
Examples: $8,673 becomes 8.7; $12,229 becomes 12.2
(See details in About "Expense Buckets" link.)
When projecting, it is easier to group expenses into 5 major categories, or "buckets".
Variable expenses are a percent of sales; the monthly dollar amount rises and falls as sales fluctuate.
Fixed expenses average essentially the same dollar amount each month.
(If you've not yet set up these categories on your P&L, use The ROI's SPEEDY Expense Analyzer.)
SELLING Expenses -
Examples: Store payroll, including taxes and benefits; Advertising; Bags & boxes; Special events; etc.
OCCUPANCY Expenses - Fixed expense, essentially flat $ amount each month
Examples: Rent; Utilities; Maintenance; Security; CAM charges; etc.
ADMINISTRATIVE Expenses - Fixed expense, essentially flat $ amount each month
Examples: Management salaries (Owner; General Manager; Buyer) including taxes and benefits; Support staff/services (bookkeeping; IT; warehouse; marketing); Interest on borrowed money; Professional services (legal, accounting); Training; Travel; All other expenses not included elsewhere.
TAXES - Federal, State, Local taxes not included elsewhere.
DEPRECIATION/AMORTIZATION - Fixed expense, essentially flat $ amount each month.
These are non-cash expenses, and must be kept separate in order to project the Cash Flow.
Open-to-Buy Plan Inputs
Beginning Inventory @Cost - Enter the approximate amount of total inventory on hand at the start of your 12 month planning period. Close counts! Round $ entries to nearest thousand
Targeted Inventory Turns - Choose your targeted inventory turnover rate from the dropdown menu.
The Key: Cash Flow
Current Inventory Payables - Estimate of your total Accounts Payable for inventory (only) purchases. Close counts! Round $ entry to nearest thousand.
Example: Enter $127,835 as 127.8
Long Term Loan Payments - Enter monthly payments (principal only) for any existing Long Term loans. Round $ entry to nearest thousand.
Cash on Hand - Estimate of cash available at beginning of the 12 month planning period you are using. Close counts! May also be a negative entry to reflect payments/checks waiting to clear. Round $ entry to nearest thousand.
AND THAT'S IT!
The INTEGRATED Calculator brings over (integrates) all other needed entries from your Profit Plan Inputs, Projected P&L, and Projected Open-to-Buy Plan.
Look at Your Projections; Adjust As Needed
Does your projected P&L show you will have a loss?
Does the cash flow projection show cash shortfalls ahead?
Try out some "What if...?" adjustments. Immediately see the effect!
CHANGE SALES and/or GROSS MARGINS?
On the Profits screen, change Sales in any month(s). Remember to adjust Gross Margins in those months as needed. Then, go to the Projected Cash Flow to see the effect.
On the Profits screen, adjust your planned expenses. Then, return to the Projected Cash Flow to see the effect.
CHANGE INVENTORY TURNS?
On the Inventory screen, enter a higher turnover rate. Then, go back to the Projected Cash Flow to see the effect.
GET DATING FROM VENDORS?
The Projected Cash Flow allows you to show the effect of Dating on your Cash Flow. Enter the $ amounts to be deferred in the appropriate month(s); ALSO enter the $ amounts due to be paid in the appropriate month(s). All entries are positive amounts; round all $ entries to nearest thousand.
The Projected Cash Flow includes inputs for Loans Received and Loan Repayments. (Note: Interest on the borrowed funds must be added into Administrative Expenses on the P&L inputs.)
CAUSE-EFFECT, CAUSE-EFFECT, CAUSE-EFFECT
Just add your judgment. The INTEGRATED "What if...?" Calculator does the number crunching for you.
Adjustments all in? Like what you see? Great!
Now, print it out: Your INTEGRATED Retail Financial Plan
You will get:
Projected PROFIT & LOSS STATEMENT
Monthly "big picture" operating budget for you.
And Projected INVENTORY BUYING PLAN (Open-to-Buy)
Based on your planned sales, margins, and targeted turnover rate, a monthly buying plan for your total operation. Each month's targeted ending inventory is a key number!
And Projected CASH FLOW
Fully integrated Cash Flow plan specifically for retailers: reflects the effect of inventory purchases, sales, margins and expenses on your cash flow.