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The Settings Sheet

Article by Caya
Last update: May 22, 2025

The Settings sheet is a foundational part of your financial model. It's the central place where you define key company-specific parameters and assumptions that will ripple throughout the entire workbook. Getting these settings right is crucial for ensuring your financial projections are accurate and tailored to your business.

General Settings

This is where you input the most basic information about your company and model preferences.

Company Name:

The company name you enter here will automatically appear across various sections and dashboards within the financial model, ensuring consistency.

Default Value: [Company Name]

Currency:

This selection defines the currency (defaulting to US Dollars) that will be used for all financial values throughout the model. Most monetary inputs and outputs are linked to this setting. As a general good practice, you should format numbers for accounting, and not for currency.

Default Value: USD

DON'T add currency symbols to each cell, since it will create a visual overload.
Instead, format numbers as Automatic or Numbers, not as Currency.

Model Start Date:

This date marks the beginning of your financial projections. The model is designed to start on calendar years, with January 1st, 2025, as the pre-set start. Financial models often support projections for a set period (e.g., up to 84 months or 7 years from this start date).

Default Value: 1/1/2025

We only support starting the model in calendar years. We use a Data Validation dropdown to limit the input values to the start of calendar years. If you need a year that's different from the list available, you can edit it from the Data Validation settings on the spreadsheet.

Last Month of Actuals / Historicals:

This setting helps differentiate between your past financial data (actuals/historicals) and your future projections. The sheet notes that "Historical Months will be formatted differently," meaning the model applies distinct formatting or handling for these past periods.

Default Value: Last Month

Company History

This section captures crucial financial data from before your model's start date (pre-set to 01/01/25). These figures are essential for establishing your opening balance sheet and directly influence the opening figures in the Balance Sheet section of your detailed financial statements (often found in a sheet like 'FS-Month').

Invested Capital before [Model Start]:

This represents the total equity invested in the company before the model's start date.

Default Value: 0 USD

Available Cash Balance on [Model Start]:

This is the opening cash balance your company will have at the beginning of the projection period.

Default Value: 0 USD

VAT Owed before [Model Start]:

This covers any Value Added Tax (VAT) or similar sales tax liabilities outstanding as of the model start date.

Default Value: 0 USD

Income Taxes Owed before [Model Start]:

This refers to any corporate income taxes that were accrued but not yet paid before the model's start date.

Default Value: 0 USD

Taxes

The Taxes section of the Slidebean Financial Model Template is a crucial component for accurately projecting your company's tax liabilities and understanding its fiscal responsibilities. This section is divided into two main parts: Corporate/Income Tax and VAT and Sales Tax. Each part is designed to capture specific tax-related data relevant to your business operations.

Understanding Sales Tax vs VAT

Sales Tax is a consumption tax imposed by the government on the sale of goods and services. When a customer purchases a product or service, the sales tax is added to the sales price. Here are some key points about Sales Tax:

  • Point of Sale Collection: It is typically collected by the retailer at the point of sale and then passed on to the government.
  • Varies by Location: The rate can vary significantly depending on the state, county, or city where the business operates.
  • Direct Tax on Consumers: Ultimately, it is a tax paid by the end consumer, making it a direct tax on consumer expenditure.

VAT is a tax on the value added to goods and services at each stage of production or distribution. It is more complex than sales tax and has a different mechanism. Here’s how it works:

  • Charged at Each Stage: VAT is applied at each stage of the supply chain, from production to the point of sale.
  • Credit Mechanism: Businesses charge VAT on their sales (output VAT) and are charged VAT on their purchases (input VAT). They can claim a credit for the VAT paid on inputs, paying the government only the difference between output and input VAT.
  • Inclusive in Price: Unlike sales tax, VAT is usually included in the price of goods and services; the end consumer may not always see it as a separate charge.

Corporate/Income Tax Inputs

Income tax rate:

This rate is applied to your company's taxable income to estimate corporate tax liabilities. The sheet notes this "Will be used to estimate the annual tax payment, that will be added to FS-Month."

Default Value: 21%

Start of Fiscal Year:

This defines the beginning of your company's financial year for tax purposes.

Default Value: 1 month (e.g., January)

Tax Consolidation Month:

Typically, this is the month when annual tax liabilities are finalized or paid.

Default Value: 4 month (e.g., April, if the fiscal year starts in January)

Partial Income Tax Payments:

With this disabled, the model does not account for pre-payments of income tax throughout the year; the full estimated annual tax will likely be accounted for based on the consolidation month.

Default Value: Disabled

VAT and Sales Tax Inputs

This section addresses indirect taxes levied on sales. It's important to differentiate between VAT (Value Added Tax) and Sales Tax, as their mechanics differ. Sales Tax is typically charged to the final consumer, while VAT can be charged at multiple stages of the supply chain, with businesses often able to reclaim VAT paid on their inputs.

VAT/Sales Tax Rate for Revenue Sources 1-4 (%)

Default Value: 0%

Here you enter the corporate or income tax rate applicable to your business, expressed as a percentage. This rate is used to calculate the income tax liabilities based on your company's taxable income.

Sales Taxes are NOT considered part of revenue, and instead, are added to the Cash Flow statement and the Balance Sheet (as Liabilities) until they are paid.

VAT/Sales Tax Payment Frequency

Default Value: Last Month

The model will automatically estimate applicable VAT/Sales Tax payments based on revenue. As a general accounting practice, collected Sales Tax/VAT is not considered part of revenue, but rather a cash flow that is collected and then must be paid to the tax authority.

The VAT/Sales Tax liability is accounted for on each month in the model. The model then assumes a payment/closure of the tax liabilities for 'Last Month', last 'Last Quarter' or 'Last Fiscal Year'.

Additionally, the model allows you to enter manual payments directly on the Taxes sheet.

VAT Payment SG&A/COGS

Default Value: 0%

If you operate in a country with VAT, our model lets you included an assumed VAT paid for each COGS and SG&A line, with the exception of Payroll. VAT payments are then used to offset the VAT collected.

The model assumes the SG&A and COGS expenses added to the model are inclusive of VAT, and then estimates the VAT paid for that line.

In this example, a manual expense of USD 1,000 has been added to the COGS sheet. The model automatically estimated that the actual cost of goods was $885, with a tax paid of $115 (based on a 13% VAT).

More detail on how this works can be found on the Taxes article.

Valuation

The VALUATION section in the Slidebean Financial Model is a crucial component for businesses aiming to estimate their potential value based on financial projections. It uses a simplified approach based on the Discounted Cash Flow (DCF) method. The business valuation based on existing assumptions can be viewed on the FS-Annual sheet.

Here’s an overview of the key elements in this section:

Terminal Business Value

Default Value: USD 42,000,000

This figure represents the estimated acquisition price for the company at the end of the projection period. It assumes the company is sold at the end of the seventh year in the financial model. With this input, plus the available cash flow to the business at that time, a discounted cash flow valuation is estimated.

Discount Rate (WACC)

Default Value: 11.79%

WACC, or Weighted Average Cost of Capital, is used as the discount rate in this model. It represents the company’s cost of capital, accounting for the risk associated with its specific business and financial structure. The discount rate is crucial in the DCF model as it impacts the present value of future cash flows. A higher rate typically indicates a higher risk and consequently lowers the present value of the company.

Important Note on Valuation

It's vital to understand that the valuation provided by this model is an estimation based on the financial projections input by the user. It is not intended to serve as an official appraisal or assessment of the current valuation of the company. The model's purpose is to offer a ballpark figure that can help in strategic planning and decision-making.

For businesses seeking an official valuation, especially for regulatory or investment purposes, it is recommended to obtain a certified 409A Valuation. A 409A Valuation is a formal report that provides a defensible valuation of a private company's common stock, ensuring compliance with IRS regulations and protecting against potential tax penalties. Our team can assist with this.

In summary, the VALUATION section of the Slidebean Financial Model provides an accessible tool for businesses to approximate their value, while emphasizing the importance of seeking professional valuation services for official purposes. You can learn more about WACC here.

The Settings sheet is a foundational part of your financial model. It's the central place where you define key company-specific parameters and assumptions that will ripple throughout the entire workbook. Getting these settings right is crucial for ensuring your financial projections are accurate and tailored to your business.

General Settings

This is where you input the most basic information about your company and model preferences.

Company Name:

The company name you enter here will automatically appear across various sections and dashboards within the financial model, ensuring consistency.

Default Value: [Company Name]

Currency:

This selection defines the currency (defaulting to US Dollars) that will be used for all financial values throughout the model. Most monetary inputs and outputs are linked to this setting. As a general good practice, you should format numbers for accounting, and not for currency.

Default Value: USD

DON'T add currency symbols to each cell, since it will create a visual overload.
Instead, format numbers as Automatic or Numbers, not as Currency.

Model Start Date:

This date marks the beginning of your financial projections. The model is designed to start on calendar years, with January 1st, 2025, as the pre-set start. Financial models often support projections for a set period (e.g., up to 84 months or 7 years from this start date).

Default Value: 1/1/2025

We only support starting the model in calendar years. We use a Data Validation dropdown to limit the input values to the start of calendar years. If you need a year that's different from the list available, you can edit it from the Data Validation settings on the spreadsheet.

Last Month of Actuals / Historicals:

This setting helps differentiate between your past financial data (actuals/historicals) and your future projections. The sheet notes that "Historical Months will be formatted differently," meaning the model applies distinct formatting or handling for these past periods.

Default Value: Last Month

Company History

This section captures crucial financial data from before your model's start date (pre-set to 01/01/25). These figures are essential for establishing your opening balance sheet and directly influence the opening figures in the Balance Sheet section of your detailed financial statements (often found in a sheet like 'FS-Month').

Invested Capital before [Model Start]:

This represents the total equity invested in the company before the model's start date.

Default Value: 0 USD

Available Cash Balance on [Model Start]:

This is the opening cash balance your company will have at the beginning of the projection period.

Default Value: 0 USD

VAT Owed before [Model Start]:

This covers any Value Added Tax (VAT) or similar sales tax liabilities outstanding as of the model start date.

Default Value: 0 USD

Income Taxes Owed before [Model Start]:

This refers to any corporate income taxes that were accrued but not yet paid before the model's start date.

Default Value: 0 USD

Taxes

The Taxes section of the Slidebean Financial Model Template is a crucial component for accurately projecting your company's tax liabilities and understanding its fiscal responsibilities. This section is divided into two main parts: Corporate/Income Tax and VAT and Sales Tax. Each part is designed to capture specific tax-related data relevant to your business operations.

Understanding Sales Tax vs VAT

Sales Tax is a consumption tax imposed by the government on the sale of goods and services. When a customer purchases a product or service, the sales tax is added to the sales price. Here are some key points about Sales Tax:

  • Point of Sale Collection: It is typically collected by the retailer at the point of sale and then passed on to the government.
  • Varies by Location: The rate can vary significantly depending on the state, county, or city where the business operates.
  • Direct Tax on Consumers: Ultimately, it is a tax paid by the end consumer, making it a direct tax on consumer expenditure.

VAT is a tax on the value added to goods and services at each stage of production or distribution. It is more complex than sales tax and has a different mechanism. Here’s how it works:

  • Charged at Each Stage: VAT is applied at each stage of the supply chain, from production to the point of sale.
  • Credit Mechanism: Businesses charge VAT on their sales (output VAT) and are charged VAT on their purchases (input VAT). They can claim a credit for the VAT paid on inputs, paying the government only the difference between output and input VAT.
  • Inclusive in Price: Unlike sales tax, VAT is usually included in the price of goods and services; the end consumer may not always see it as a separate charge.

Corporate/Income Tax Inputs

Income tax rate:

This rate is applied to your company's taxable income to estimate corporate tax liabilities. The sheet notes this "Will be used to estimate the annual tax payment, that will be added to FS-Month."

Default Value: 21%

Start of Fiscal Year:

This defines the beginning of your company's financial year for tax purposes.

Default Value: 1 month (e.g., January)

Tax Consolidation Month:

Typically, this is the month when annual tax liabilities are finalized or paid.

Default Value: 4 month (e.g., April, if the fiscal year starts in January)

Partial Income Tax Payments:

With this disabled, the model does not account for pre-payments of income tax throughout the year; the full estimated annual tax will likely be accounted for based on the consolidation month.

Default Value: Disabled

VAT and Sales Tax Inputs

This section addresses indirect taxes levied on sales. It's important to differentiate between VAT (Value Added Tax) and Sales Tax, as their mechanics differ. Sales Tax is typically charged to the final consumer, while VAT can be charged at multiple stages of the supply chain, with businesses often able to reclaim VAT paid on their inputs.

VAT/Sales Tax Rate for Revenue Sources 1-4 (%)

Default Value: 0%

Here you enter the corporate or income tax rate applicable to your business, expressed as a percentage. This rate is used to calculate the income tax liabilities based on your company's taxable income.

Sales Taxes are NOT considered part of revenue, and instead, are added to the Cash Flow statement and the Balance Sheet (as Liabilities) until they are paid.

VAT/Sales Tax Payment Frequency

Default Value: Last Month

The model will automatically estimate applicable VAT/Sales Tax payments based on revenue. As a general accounting practice, collected Sales Tax/VAT is not considered part of revenue, but rather a cash flow that is collected and then must be paid to the tax authority.

The VAT/Sales Tax liability is accounted for on each month in the model. The model then assumes a payment/closure of the tax liabilities for 'Last Month', last 'Last Quarter' or 'Last Fiscal Year'.

Additionally, the model allows you to enter manual payments directly on the Taxes sheet.

VAT Payment SG&A/COGS

Default Value: 0%

If you operate in a country with VAT, our model lets you included an assumed VAT paid for each COGS and SG&A line, with the exception of Payroll. VAT payments are then used to offset the VAT collected.

The model assumes the SG&A and COGS expenses added to the model are inclusive of VAT, and then estimates the VAT paid for that line.

In this example, a manual expense of USD 1,000 has been added to the COGS sheet. The model automatically estimated that the actual cost of goods was $885, with a tax paid of $115 (based on a 13% VAT).

More detail on how this works can be found on the Taxes article.

Valuation

The VALUATION section in the Slidebean Financial Model is a crucial component for businesses aiming to estimate their potential value based on financial projections. It uses a simplified approach based on the Discounted Cash Flow (DCF) method. The business valuation based on existing assumptions can be viewed on the FS-Annual sheet.

Here’s an overview of the key elements in this section:

Terminal Business Value

Default Value: USD 42,000,000

This figure represents the estimated acquisition price for the company at the end of the projection period. It assumes the company is sold at the end of the seventh year in the financial model. With this input, plus the available cash flow to the business at that time, a discounted cash flow valuation is estimated.

Discount Rate (WACC)

Default Value: 11.79%

WACC, or Weighted Average Cost of Capital, is used as the discount rate in this model. It represents the company’s cost of capital, accounting for the risk associated with its specific business and financial structure. The discount rate is crucial in the DCF model as it impacts the present value of future cash flows. A higher rate typically indicates a higher risk and consequently lowers the present value of the company.

Important Note on Valuation

It's vital to understand that the valuation provided by this model is an estimation based on the financial projections input by the user. It is not intended to serve as an official appraisal or assessment of the current valuation of the company. The model's purpose is to offer a ballpark figure that can help in strategic planning and decision-making.

For businesses seeking an official valuation, especially for regulatory or investment purposes, it is recommended to obtain a certified 409A Valuation. A 409A Valuation is a formal report that provides a defensible valuation of a private company's common stock, ensuring compliance with IRS regulations and protecting against potential tax penalties. Our team can assist with this.

In summary, the VALUATION section of the Slidebean Financial Model provides an accessible tool for businesses to approximate their value, while emphasizing the importance of seeking professional valuation services for official purposes. You can learn more about WACC here.

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