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The spreadsheet is not wrong. It's just named incorrectly. It should be called "Income Statement Generator" because that's exactly what it is.
by lubos 7y ago
The spreadsheet is not wrong. It's just named incorrectly. It should be called "Income Statement Generator" because that's exactly what it is.
- hencq 7y agoIt's not though. For example, the hardware/software purchases in month 1 are an expenditure, but would likely be a depreciation expense over a period of time.
- lubos 7y agoCan you give an example? In Australia, you'd need to buy hardware or software for more than $30,000 per unit to be forced to depreciate it over multiple periods. Anything cheaper than $30,000 can be expensed right away. So I'm looking at it through Australian optics and having "Hardware/software" under expenses would be fine for almost every small business here.
- hencq 7y agoYeah, I guess you're right. It's just confusing to see them call the spreadsheet "Cashflow projections" and then use the words 'expenses' and 'profit/loss'. But then again, they also use 'expenditures', so who knows what they're going for. In their example spreadsheet (and to your point) I guess all the expenditures could correspond 1:1 with expenses, so in this case cashflow == profit maybe.
- hipshaker 7y agoIn Denmark, anything over 2000 USD has to be depreciated.
- mdorazio 7y agoGenerally in the US, if an individual unit costs under around $5k it's easier to just count it as a one-time expense instead of dealing with a depreciation schedule.