Create a financial forecast for your HMRC Advance Assurance applications #

The HMRC has specific requirements for financial forecasts to be submitted for either the Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS) which most early-stage UK startups would be looking to apply to.

We have covered the 5 broad points to be considered when building your financial model here. To generate a compliant model on Caena, here are the steps to follow

  1. Click on Financial Modelling in the Navigation Bar and then click on Create Financial Model
  2. ScreenshotClick on Ideation: This is suitable for early-stage businesses and / or raising capital for the first timeScreenshot
  3. Model Setup
    • Choose Modelling Currency: for HMRC Schemes this should be GBP
    • Choose Start Year: 2022 is fine for most purposes
    • Choose Length of Projection Period: click on 3 Years. This is a strict requirement from the HMRC
    • Choose Historical Data: NIL / No Historical Data is fine here. Then click on Continue to go on to next page
  4. Choose how to input your variables / assumptions:
    • Choose Computed to enter drivers specific to your business model and let the platform compute your revenue. We have two business model specific routes here – SaaS and e-commerce. For instance with SaaS, you can enter assumptions such as churn, starting customer numbers and ending customer numbers and the system generates your revenue

    • Direct to enter revenues directly: i.e. a GBP figure per year growing by a certain percentage each yearScreenshot

  5. This example uses the Direct approach: Fill in the fields for the first year of forecast period. Hover on tool tips (question marks) for help or click and search glossary in bottom right
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  6. Projections: build the second and third years of your forecast by inputting high level year-on-year revenue growth using percentages. Note that the costs are as a percentage of revenueScreenshot
  7. And it’s all DONE! Three year forecasts ready just like that. Choose units on upper right and download to PDF (premium subscription). Screenshot
  8. For charts, select / deselect the 3 different elements. You can also save charts to your desktop (premium subscription) in different formats for use in pitch decks, business plans and other fundraising documents

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