The Start-Up Expenses Statement is simply a profit / loss statement (without revenues) for the period before the plan begin date (set on Set Up page). The startup period generally lasts for one or two months. If your startup period is for more than a month make sure you enter how many months the period is on the Set Up page.
A Typical the Start-Up Expense Statement will have the following expense accounts:
- Legal - Fees necessary to form the legal entity.
- Stationery - Business cards, letterhead, envelopes, etc.
- Brochures - Flyers, pamphlets, mailings to prospective customers, etc.
- Consultants - Money paid to public relation consultants, accountants, Industry specialists, etc.
- Rent - Rent paid during the startup period.
- Research and Development - Fees paid for marketing research reports, money spent to research a competitors product, etc.
- Expensed Equipment - Fixed assets that are too small to depreciate generally less a few hundred dollars each.
- Minor Leasehold Improvements - Improvements that are too small to depreciate generally less a few hundred dollars each.
- Supplies - Items that will be used in the business, but not sold to customers.
Occasionally, some revenue will be earned during the startup period. Usually you will not forecast for any revenue, but it is possible to make a sale before the company is even set up. If you need to you can include a revenue section. See the "Revenue Section" below for more information.
Revenue Section
The Revenue Section is hidden unless the "Exclude Revenues on the Start-Up Expenses Statement" box is unchecked on the Set Up page.
Add New Expense
A typical Start-Up Expense Statement will have 5-10 expense accounts, however you can add up to 50 expense accounts.
After you add an expense account you should rename it. The accounts are arranged alphabetically, so once you rename it will likely move up or down.
Editing Amounts
Expenses are entered as positive amounts. If you enter an expense as a negative amount it will increase the Net Income.
You cannot edit or delete interest expense. See Interest Expense below.
Deleting Accounts
You can delete any expense account other than interest expense. Any amount that is left at $0.00 can be hidden so that it does not appear in your reports. You can choose to hide accounts with $0.00 amounts on the "Reports - Formatting / Output" page.
Interest Expense
Interest expense is derived from the loan amortization schedule. The account cannot be deleted, but will not appear on your reports if it is $0.00 and you click on the box entitled "Hide rows / sections that contain all zeros" on the Reports - Formatting / Output page.