Definition: A burn rate forecast is a list of expenses the business must incur in order to allocate revenue producing
expenses and operating expenses throughout a given span of time.
Objective: The purpose of preparing a burn rate forecast is to determine what expenses are needed and the rate at
which they are being incurred during normal business operations. It helps users plan on how to properly allocate
cash resources to cover long-term expenses. If cash shortages are revealed , financial plans must be altered to
provide more cash until a proper cash flow balance is obtained. For example, customer discounts for pre-payments,
The Spreadsheet: This worksheet provides a systematic method of recording estimates of direct and indirect
expenditures, as they relate to revenue-producing processes. It also helps in the timing of said expenditures, which
can be compared with a revenue influx as it becomes known. The entries listed in the spreadsheet will not
necessarily apply to every business, so users should adapt the spreadsheet to the particular business for which the
projection is being made.
1. Populate all applicable cells in the "Current Year" column under the "Burn Rate Forecast" tab. Cells that require
your input are highlighted in BLUE.
1. Populate all applicable cells in the Burn Rate Forecast Expenditure Current Year Column. Cells that require your
input are highlighted in YELLOW.
2. Populate all applicable cells For periods 1, 2 and 3. Cells that require your input are highlighted in GREEN.
3. The worksheet will automatically calculate the period 4 figures and provide you with overhead budget totals and
percentages, by period.
1. The cash position at the end each quarter should be adequate to meet the expense requirements for the following
quarter. If there is not sufficient revenue to meet the expenses of the subsequent quarter, then additional revenue
sources and or the reduction of expenses will have to be analyzed to meet projection needs.
2. The projection becomes more useful when the forecasted information can be compared with actual information
as it develops. It is important to follow through and complete the actual columns as the information becomes
available. Utilize the burn rate forecast to assist in setting new goals and planning operations for more profit.
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Projected Fundraising Financial Activity Report
Budget versus Actual
Burn Rate Forecast Anticipated Forecasted Forecasted Forecasted Forecasted
Burn Rate Total Burn Rate Burn Rate Burn Rate Burn Rate
For All Periods Period 1 Period 2 Period 3 Period 4
100.00% 20.00% 35.00% 30.00% 15.00%
Item A 525,000
Item B 175,000
Total Revenues 700,000
Purchases - Item A 130,000 26,000 45,500 39,000 19,500
Purchases - Item B 120,000 24,000 42,000 36,000 18,000
Production Supplies - Item A 150,000 30,000 52,500 45,000 22,500
Production Supplies - Item B 125,000 25,000 43,750 37,500 18,750
Rent - Location A 50,000 10,000 17,500 15,000 7,500
Rent - Location B 50,000 10,000 17,500 15,000 7,500
Telephone 2,000 400 700 600 300
Insurance 4,000 800 1,400 1,200 600
Courier Service & Postage 500 100 175 150 75
Office Supplies 900 180 315 270 135
Salaries & Wages 64,800 12,960 22,680 19,440 9,720
Utilities 1,000 200 350 300 150
Legal & Professional Fees 1,000 200 350 300 150
Refuse & Carting 300 60 105 90 45
Supplies 500 100 175 150 75
Total 700,000 140,000 245,000 210,000 105,000
Forecasted Burn Rate Percentage 100.00% 20.00% 35.00% 30.00% 15.00%
(Over) Under Forecast 0 560,000 315,000 105,000 (0)
Instructions for use:
Change values in column B, rows 6 and 7
Change values in column B, rows 14 to 28
Change values in row 4, columns D, F & H, as forecasted
All computations will update automatically
Values in row 31 should equal values in row 4
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