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ThruThink® generates information that every business needs.
Check out some of the popular features of our system.
Annual Budget Report - Monthly Breakdown
Monthly budget and financial summary of your projections
All in one place!
✔ Monthly Cash Flow spread by category
✔ Income Statement Summary for the year
✔ Beginning & Ending Summary Balance Sheet
✔ Beginning and Ending Working Capital
✔ Line of Credit monthly balance projections
This is an annual budget with monthly activity that's made for the Bank
Here are more of the unique features of ThruThink®
13 Week Cash Flow Forecast
Enter any one of the first 12 months of the first year of your projection horizon, and prepare a weekly projection of the cash flow for the succeeding 13 weeks.
Choosing month 12 produces weekly cash flow for month 12 and the following 8 - 9 weeks of the next year.
Compare Projections to Actuals
During the first year of your projection horizon, the User may enter Actual Results for each month and compare Actuals to Projections for the month and Year to Date.
A Guidance Report can be generated that will show the Actuals to Date and Projections for the Balance of the Year. This provides guidance for the entire year based on actuals to date.
ThruThink Deal Score®
Our optional ThruThink Deal Score® service is part of theThruThink Evaluation® service and generates a score of "A", "B", "C", "D", or "F" for the "Deal".
The ThruThink Deal Score® boils everything down to just one letter. This feature is optional and the User may turn it on or off.
It is not necessarily a score for the quality of the Company itself, but a score for the "Deal". In other words, an excellent Company can receive a poor Deal Score because of the level of the purchase price or valuation, improper debt or equity structure, capital expenditures, owner draws, etc.
Make sense of it all.
Our ThruThink Evaluation® service provides an evaluation of what all the numbers mean.
Net Income, Cash Flow, Debt Level and Acceptability of Return as well as other explanations are explained and shown with graphical representations that provide a quick picture of "What's going on".
The process will illustrate risks of running short of funds in the future, which provide feedback to adjust the business purchase price, terms, debt, equity and or operations before running out of cash or poor performance.
ThruThink® and EBITDA
With ThruThink®, earnings for a business is expressed as Earnings before Interest, Income Taxes, Depreciation and Amortization (EBITDA).
Since EBITDA is a product of sales less expenses, in order to get to EBITDA, the User may input very specific inputs for Sales and Expenses, however some situations call for the convenience of jumping over the sales less expense process and simply input EBITDA directly. ThruThink® incorporates the ability to use either Sales less Expenses or EBITDA directly to show earnings.
Weekly and Monthly Cash Flow
Weekly and Monthly Cash Flow is monitored through the Annual Monthly Budget and 13 Week Cash Flow Forecast.
The Annual Monthly Budget lays out monthly cash flow for each of the first three years.
The 13 Week Cash Flow Forecast can be done from any of the 12 months of the first year showing the succeeding 13 weeks cash flow.
Collection of sales is managed through Accounts Receivable categories, payment of expenses is managed through Accounts Payable categories and Inventory is managed through Time of Hold categories. All of which can be set from 0 to to 365 day periods.
Capital expenditures (CapEx) which are asset purchases can be incorporated by the User into the analysis
CapEx or asset sales activity can be entered on a monthly basis during the first three years of your projection.
See how your CapEx plans affects your Cash Flow.
Match future debt on a monthly basis to your CapEx needs and check to see if you can stay within your loan covenants?
Estimated ordinary income tax on operations can be calculated on either a cash or accrual tax basis based on Inputs by the User for several different graduated income levels and tax rates for two different types of government taxing authorities (ex. in the USA, Federal and State).
The cash flow projection will reflect quarterly Income Tax estimates paid throughout the current year.
Dynamic and Non Scheduled Adjustments
On the Cash Flow Control page, as cash flow dictates, the User may make summary annual non-scheduled or "extra" inputs for Sales, Expenses, or loan payments/draws on the major debt categories.
This will provide unlimited "what if" and sustainability scenarios. All such inputs update the entire analysis together with all of the reports.
Adjusting Journal Entries
Adjusting Journal Entries to future periods for direct adjustment of certain balance sheet items as well as general income or expense categories can be made to tailor individual numbers to fit your situation.
This is like having an accounting system for the future.
Exit Strategy Analysis
The ThruThink Evaluation® process has an Exit Strategy provision that provides for the sale of the business and an exit for the Owners or Equity Groups. A business sale value expressed either as a whole number sale or a multiple of EBITDA can be entered by the User for a future year within the Users selected time horizon.
Non Expense Cash Flow Requirements
Non expense cash flow can torpedo your business. This type of cash flow often falls under the radar because it is not counted in the Profit and Loss.
With ThruThink®, inputs for non-expense cash flow requirements can be made for such things as Owner Draws, Living Expenses or any non-expense cash flow requirement of the business. These types of items are not expenses and do not show up on a Profit & Loss but certainly are cash flow items.
The Horizon Period can be set for 3, 5, 10, 15 or 20 years. The Horizon Period is the # of years that you would like your analysis to consider.
All of the financial reports and returns will reflect the Horizon Period chosen by the User.
The Balance Sheet, Income Statement and Cash Flows will be presented for each year of the Horizon Period.
Sale or Purchase of a Portion of the Business
With ThruThink®, the User can look at the effect of selling a portion of the business to raise capital. Answers can be explored to such questions as "How much will sales and EBITDA have to increase with the added capital from an equity investment to make it worthwhile to the selling Owner".
Conversely, an Equity Group, investor or partner can look at the effect of buying a portion of the business and leaving the Owner as an Equity partner. How will the business have to perform to make the investment worthwhile, how much equity is required to accomplish that performance and how much equity for that contribution do I need or should I negotiate from the owner?
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