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
- Click on Financial Modelling in the Navigation Bar and then click on Create Financial Model
Click on Ideation: This is suitable for early-stage businesses and / or raising capital for the first time
- 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
- Choose how to input your variables / assumptions:
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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
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Direct to enter revenues directly: i.e. a GBP figure per year growing by a certain percentage each year
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- 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
- 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 revenue
- And it’s all DONE! Three year forecasts ready just like that. Choose units on upper right and download to PDF (premium subscription).
- 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
Read more here: https://caena.io/seis-eis/