Payback period is referred as a time required recouping the funds expended in an investment or to reach the break-even point. The payback period is important to determine for the success of any project, because it will help you to know about the desirable investment positions. Payback period is calculated as:
Payback Period = Cost of Project / Annual Cash Inflows
It is a capital budgeting technique that has great importance in all investment areas. The payback period can be easily understood with the help of following example:
The payback period for the $2,000 investment with $1,000 per year return is 2 years. The payback period is important to measure the payback period so that you can come to know for how long you have to pay for it. Payback period can be shorter or longer according to the payment. Usually, shorter payback period is preferred as compare to longer payback periods. The payback period is famous because of its convenience. The payback period is a financial term and the concept is occasionally extended to the other uses.
Payback Period Template is a MS Excel 2003 Template that allows to plan Payback Period for a loan or equity purchase. This is professional template and can be used to calculate Payback Period for anything. here is its preview,
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Purpose of Payback Period
It is an important tool to analyze the investment and its benefits. It is easy to apply and understand; therefore it is frequently used to analyze the investment decisions. It is really useful to use payback period tool before taking any important decision. The payback period is an important analysis method with some benefits and limitations. You can consider different risk factors and time value of money to know about the opportunity cost. This tool is really useful to take investment decisions. The economist prefers to measure net present value and internal rate of return that is used in the calculations of payback period.
Construction of Payback Period
Payback period is calculated in years and the calculations are started with the calculation of Net Cash Flow of every year. Following formulas will be used:
Net Cash Flow of 1st Year = Cash Inflow of 1st Year – Cash Outflow of the 2nd Year
Cumulative Cash Flow = Net Cash Flow of the 1st Year + Net Cash Flow of the 2nd Year+ Net Cash Flow of the 3rd Year and so on. The positive value indicates the payback year and fruitful investment. You can accurately calculate the payback period with the help of following formula:
Payback Period = Total Invested Amount / Estimated Annual Net Cash Flow
In finance, the Payback Period is calculated as follow:
Payback Period = (p – n) / p + ny
= 1 + ny – n/p (unit: years)
In the above mentioned formula:
- ny = Total number of years later than preliminary investment at the point of last negative value of cumulative cash.
- n = The last negative value of cumulative cash flow.
- p = The first positive value of the cumulative cash flow.
The formula is best to calculate earliest payback period to get the positive outcomes of investment. If you get negative value, then the cash flow is not favorable, though the variations occur and the formula can’t be applied.
Retirement Income Tax Template is a MS Excel 2003 Template for those looking for a way to file their Income Tax Return during their retirement time. This is professional template and can suit anyone’s need perfectly. No doubt, effective retirement planning is the key to ensure a healthy and tension-free retirement life.
Income tax is one of the critical issues faced by many retired persons in current days. The substantial amount of income taxes is a burden on the retired people, because they left only a smaller amount for their other expenses after paying income tax. Usually, tax-free saving accounts are preferred by the retired persons to deposit their funds to avoid taxes and other deductions. There are some traditional tax-deferred accounts for retired individuals and there are some tax advantages with some limitations. The withdrawn money of these accounts is taxed as the ordinary income.
Here is preview of this Retirement Income Tax Template created using MS Excel,
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There are many people who may not know about the tax on the retirement income and following are some details that may help you to understand different tax situations:
Taxes cannot be a Problem Every Time
It may be a surprising fact for you that you have to pay very little amount of income tax by facing some deductions and exemptions. The income more than $50,000 is taxable and the standard deductions as well as the personal exemptions can be reduced substantially. The taxable income may fall into the lowest bracket. For instance, John and Vanessa both are retired at the age of 60s. The John receives $3,000 per month in the social security income and Vanessa receives $1,500 per month. The John also gets $1,200 per month as pension income from his company and the Vanessa get $8,000 from her part-time job annually. The John gets a traditional IRA of worth $200,000 from his retirements plan from the company. The Vanessa contributes in the Roth IRA of $60,000, and they both have a joint saving account with $40,000 in cash.
The John and Vanessa pay very little amount of actual taxes. Their pension and income is not subjected to taxation and the personal exemptions are enough to decrease the tax rate. The both have additional income sources, but the income is still not subjected to tax. There are some deductions and exemptions to eliminate taxable income.
It is a good idea to convert the traditional IRA to the Roth IRA. The John can convert the whole IRA in a single year, and he may pay the tax on the total amount at once at the highest rate as compare to the current tax rate. The conversion can lead the both person in the 28% tax bracket. The 28% tax rate is not only on the balance, pension and income, but the 85% of the social security income is also taxable. The couple may have to face different exemptions and deductions other than 28% tax rate on the conversion balance.
Keep Your Taxable Income Low
Vanessa may think to give up her job when the John starts withdrawing from his account to keep limit the taxable income at the same level. She can continue the earnings again if the tax rates allow her. The other deductions and exemptions are beneficial for the couple, because the decrease in the deductions may increase the tax rate.
The Bottom Line
The amount of tax is usually determined by different factors, and the withdrawal of large sum of money can create problems. It will be good to consult your financial advisor to know about the impact of taxes on your retirement income.
Maintenance of precise and up-to-date investment records is really important for the business organization. The investor should have proper tool to keep the investment record. Usually, the business owners invest a lot of money, time and efforts to run their business, but they fail to realize the importance of documentation. Every business owner tries to get maximum return out of their investment, and this can be really easy with the help of good record keeping. The efficient record keeping is important to increase the success and profit of the business. An accurate, reliable and user-friendly record keeping system is important for the business.
Investment Record Template is a MS Excel 2003 Template which is used to record investment of any person or any company. Here is its preview,
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How Investment Record Keeping Help You?
Accurate and clear records are important and can have great contribution in your success in the following ways:
- Accurate investment record will help you to quickly and accurately maintain your financial statements.
- It enables you to control the cash flow of your business.
- It makes it easy for the management to take important decision about the business.
- It may contribute in the financial situation of the business at any time.
- It will save your time and lots of efforts.
- You can keep good record for the maintenance of your staff and improve their performance.
- Measure the performance of business and helps you to design a perfect business plan.
- You can highlight problem areas and get important solutions for the problems.
- It proves helpful to take decision about the different projections for the business.
- Easily fulfill the obligations of the taxation laws.
- It proves helpful in the calculation of taxes.
- You can detect thefts of your business easily by maintaining investment records accurately.
- It may prove a source of reliable business information for the future sales according to your business requirements.
- Increase the chances of business expansion and makes it easy to achieve success.
Maintain More than One Investment Folio
Many investors find it difficult to manage the investment portfolios and maintain records. The investors can consolidate more than one portfolio by merging two or more folios in the single folio. The investors can submit a request letter to consolidate different folios. The number and important information of the folio should be entered in the letter.
Important Details for the Folio
- Name of all folio holders
- Address of persons
- Their bank details
- Tax status of the investor
- Holding nature, joint and either survivor
- Registered nominees in the folios
- Dividend, re-investment and the payouts
Legal Responsibility of the Investor
It is important for the investor to maintain complete records of the investment and explain all transactions. The record should be maintained in the English language and the person should accurately record taxable income. This record should be maintained with the date for the convenience. Proper investment record helps you to monitor every situation in better way. With the help of proper investment record, you can keep track of your gross profit and net profit. You can compare your financial situation and take decision about next investment. A good system of recording will help you in the business.
This is a 24 Month Sales Forecast Template that allows any businessman to track 24 month sales forecast for any Fiscal Year. This includes product price as well as quantity variables to record sales. This Sales Forecast Template is very useful for inventory related departments or companies.
Forecasting is a particular term that is used to make statements of coming events, time and circumstances. Mainly it is future prediction that is done according to recent conditions and situations. Sales forecasting is done in all types of business organizations to manipulate sales activities. Sales forecasting is done according to specific time period. Almost whole business planning and major activities depend on sales forecasting. Sales analysts are responsible to make sales forecasting statements. Usually quarterly and yearly based sales forecasting is done in businesses however, it varies company to company. Various methods and techniques are used for sales forecasting. Each business has to focus on sales forecasting for its success among other rivals. Organizations have to manage and hire all required resources in the light of sales forecasting.
Sales forecasting is done using past business facts and figures, conditions, circumstances and failure and success story of the business. Sales forecasting is very tricky in its nature and sales analysts need to be very criticized about business circumstances. We can say that failure and success of each business depends on the right forecasting of sales analysts. With help of proper sales forecasting, you can steer your business towards right direction.
Sales Forecast is very important in inventory and store related business because it lays the foundations for long term resource planning. However being a technical document, most often people hesitate to prepare it because they don’t know how it should look like and what important points to be included in it. Here we are going to share with you a professional designed 24 Month Sales Forecast Template so you can quickly fill up your values to compute a professional sales forecast report.
Here is preview of this template,
24 months sales forecasting is also very important as it provides required changes in your business. Conducting 24 months sales forecasting means you must keep updating process of forecasting according to new changes required in the business.
As concerned the way of doing sales forecasting is, you must focus on:
- Dividing all products in different categories to check the profit and loss condition of the business. Department wise sales forecasting can also be helpful in this regard.
- A measuring tool must be determined to take analysis of past and current sales activities so that you may predict future sales circumstances.
- Determine other factors like current market conditions, political situation of the country, trends and fashion, business competitors, seasonal changes and target areas of the business.
- Keep tracking the forecasting process is also very necessary to take advantage of business prediction.
- Financial planning and management is specifically very important to forecast sales activities in the right way.
- You must look back to your forecasted statements because there may different unseen issues that would affect your business.
- You must keep tracking and monitoring 24 months sales forecasting to make it as effective as your business requires.
- Especially check the sales activities during those months in which you have run any advertisement and marketing campaign. It is necessary because advertising campaigns affect the 24 months sales forecasting.
- Inflation is most important factor that affects the business activities on large scale so you must monitor the inflation conditions while conducting 24 months sales forecasting.
- Some other things can make 24 months sales forecasting very successful and they may include business proposals, pricing strategy, advanced managing skills, advertising concepts and staffing
These are the things you must consider while conducting sales forecasting. An authentic sales forecasting can make your business grow up and successful.
Here is download link,