Planning out the financials of a construction business is important. You want to have a good mental model for how the cash will flow through the business and what kind of profits you may have based on some given assumptions. This financial model will help you test pricing, estimate construction costs (labor / materials / equipment), and do so at scale.
Financial Statement Generator: Accrual or Cash Basis
Enjoy this comprehensive financial statement generator template. I have been building financial models for a long time, but I've never built an entire accounting system. The usefulness of this spreadsheet is simply allowing any business to enter transactions into a database style tab and having financial statements automatically produced that are GAAP / IFRS compliant. I tried to hit all the possible types of transactions a business may need to account for.
Preferred Return Financial Model - Multiple Hurdles - Simple Interest (Non-Compounding)
I had a bunch of requests for this joint venture spreadsheet structure to be built by clients and so that means it is time for a template. I have never built the logic for non-compounded preferred return hurdles with simple interest (normally I build based on IRR hurdles). It just means the accrued preferred return due does not compound on the equity balance and it also means the return due does not equal any defined IRR.
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