Software of the Month Club (Business) 1997 November

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*********************************************************************** -> This file contains detailed instructions for installing, loading and using BANK-PLAN. It can be used for reference purposes, resolving specific problems or learning in detail about BANK-PLAN. It is NOT essential to read this file before you start to use BANK-PLAN. -> The file has been supplied as an integral part of the shareware version of BANK-PLAN, a cashflow planner for small businesses, specially developed for use on a 'try-before-you-buy' basis by Invest-Tech Limited. For contact details, see end of this file. -> To print this file, type "PRINT MANUAL.TXT" at the DOS prompt. *********************************************************************** BANK-PLAN ========= SHAREWARE VERSION ================= Small Business Cashflow Planner =============================== USER MANUAL =========== Invest-Tech Limited 27 Ardmeen Park, Blackrock, Co. Dublin, Ireland Irish Tel: 01-283 4083 UK Tel: 01232-315454 (Call 9 to 9 weekdays and 10 to 6 weekends - GMT/BST) Fax: 278 2391 Fax codes: Irish:01- UK:00-353-1- Inter'l:+353-1- CompuServe: 100606,2665 Internet: brianf@iol.ie WWW URL: http://www.planware.ie/resource/planware The information and data contained in this manual are subject to change without notice and do not represent a commitment by the vendor. Both the manual and the described software are supplied under a licence agreement and may be used only in accordance with the terms of this agreement (see README.TXT). (c) Copyright 1993-97 Invest-Tech Limited All rights reserved. *********************************************************************** CONTENTS ======== PREFACE HOW TO......TABLE 1. INTRODUCTION 2. PLANNING FOR THE BANK 3. INSTALLING BANK-PLAN 3.1 First-time Installation 3.2 Initial loading of BANK-PLAN 4. BASICS OF BANK-PLAN 4.1 Loading BANK-PLAN Projections 4.2 Key Instructions 4.3 Initial Set Up Tasks 4.3.1 Video Display 4.3.2 Dot-matrix printer 4.3.3 Laser/page printer 4.3.4 Other printer setups 5. EXPLORING BANK-PLAN 5.1 First Exercise 5.2 Second Exercise 6. USING BANK-PLAN 6.1 General Advice 6.2 Structuring a Model 6.3 Model-Building Procedure 6.4 Printing Reports and Graphs 6.5 Advancing Projections 7. SUPPORT & ASSISTANCE *********************************************************************** PREFACE ======= For a general introduction to BANK-PLAN, its system requirements and related information, please refer to the README.TXT text file. BANK-PLAN is a shareware product and supplied on a "try-before- you-buy" and unsupported basis. If you wish to continue using it after a 30-day trial period you must register as a user with Invest-Tech. In return for registering, you will secure the latest fully-operational version of BANK-PLAN with access to all its print and save functions along with a copy of the complete printed manual. You also gain access to full support. You can use the Registration Form in the text file REGISTER.TXT to register via Invest-Tech or you can register via "PsL" (Public software Library). You can also upgrade and register directly with Invest-Tech via our World Wide Web (WWW) site on the Internet using a credit card and its special built-in forms. See bottom of file for details of its location. Our Web site, called PlanWare, contains downloadable versions of *ALL* our financial planners for businesses and the home. It also offers useful advice in the form of text files on such topics as business planning, cashflow forecasting etc. as well as lots of other interesting stuff. This is the most comprehensive of all the text files accompanying BANK-PLAN. It is based on the more extensive 100-page printed manual which also contains several detailed appendices, comprehensive key-stroke tutorial exercises and many other items and features. The other text files supplied with the shareware version are: Read-1st.txt This should be read by all new users. Readme.txt Basic information. Should be read by new users. Register.txt Contains registration details and Registration Form. Use to register. Vendor.txt Contains short/long descriptions of BANK-PLAN etc. For use by shareware libraries. The following batch files also contain explanatory text: bp.bat Used to load BANK-PLAN in conjunction with an existing *.ASS file specified by the user. Go.bat Special introductory file which can be run by new users as soon as they have installed/unzipped BANK-PLAN. Start.bat Used to facilitate installation and unzipping of a self-extracting file called BANKPLAN.EXE. Neither of these files may be present in some shareware versions. *********************************************************************** HOW TO...... TABLE ==================== -> You may wish to print and cut out this table. ========================================================== How to..... Initiating keys ---------------------------------------------------------- Load or reload assumptions in "filename.ass" BP FILENAME.ASS Save assumptions *F Get Help Page F1 or **CTRL+F1 Refer Help Note **RETURN+PgDn Access Main Menu F10 Use CTRL keys **CTRL Change title for projections *I, T Change Basic setup info *I, B Enter assumptions *A **F2 Copy assumption across row **CTRL+F6 or F6 Change number of decimal places **CTRL+F8 Remove selected assumptions **CTRL+F7 Remove all assumptions *I, R Advance all assumptions *D Recalculate *C or **F5 Review reports *R **F2 or **F3 Move around reports **CTRL+F2 Print reports *P View graphs *V or **F4 Print graphs *V Set up printer *I Change video display *I, V ========================================================== * Starting from BANK-PLAN's Main Menu ** Starting from within a report *********************************************************************** 1. INTRODUCTION =============== BANK-PLAN is a powerful and easy-to-use software package specifically designed for preparing cashflow projections and for forecasting short-term banking requirements. It is ideally suited for small and medium-sized businesses involved in manufacturing, distribution or services and for use by professional advisers, consultants, training organisations and financial institutions. BANK-PLAN is the electronic equivalent of a very large sheet of ruled paper. It contains variable descriptions in the left hand column, titles along the top and, in the middle, special areas for inputting hundreds of assumptions and for holding thousands of formulae which are fixed and hidden from the user. The computer's screen serves as a small window on this electronic sheet which is held in its memory. Because many elements of BANK-PLAN are linked by formulae, changes to an assumption will alter all dependent values throughout the model when it next calculates. The resulting assumptions and projections can be viewed as reports or graphs "on-screen" or printed. A related product, CASH-PLAN, is a more powerful version of BANK-PLAN. It handles about double the number of variables and contains extra facilities and features. These are described in the README.TXT file. A user who outgrows BANK-PLAN can upgrade to CASH-PLAN at a discount to the normal price. The menus etc. in CASH-PLAN are almost identical to those in BANK-PLAN. A user of the registered version of BANK-PLAN can upgrade to CASH-PLAN at a discount to its full price. BANK-PLAN is entirely menu-driven and incorporates extensive online "context-sensitive" help facilities. It is suitable for experienced users as well as for those with only limited or no prior experience of either computers or cashflow planning. BANK-PLAN is pre-formatted to handle the wide range of variables and functions normally encountered in the preparation of cashflow projections. Based on assumptions entered by a user, BANK-PLAN compiles detailed and summary cashflow forecasts with projected bank balances for up to a year ahead on a monthly basis. It produces reports detailing the underlying assumptions together with graphs which highlight the key results. It incorporates facilities for undertaking "what-if" analysis and for preparing "rolling" forecasts which can be quickly updated on a monthly basis. This manual provides detailed explanations on all aspects of the shareware version of BANK-PLAN and will help users make effective use of the package with the minimum of preparation. Once the simple installation and set-up procedures have been completed, a user can then proceed to enter assumptions, project bank balances, compile cashflow forecasts and then print reports and graphs. BANK-PLAN has been developed by Invest-Tech in association with the Small Business Development Programme of the Irish Management Institute (IMI). *********************************************************************** 2. PLANNING FOR THE BANK ======================== This Section explains the concept of cashflow; indicates how cashflows are calculated; highlights the central role of cashflow projections in determining bank funding requirements; and offers suggestions for improving cashflow and other useful advice. When planning the short- or long-term funding requirements of a business, it is more important to forecast the likely cash requirements than to project profitability etc. Whilst profit, the difference between sales and costs within a specified period, are vital indicators of the performance of a business, the generation of a profit does not necessarily guarantee the development, or even the survival, of the business. More businesses fail for lack of cash than profit. Sales and costs and, therefore, profits do not necessarily coincide with their associated cash inflows and outflows. While, sales may have been secured and goods delivered, the related payments may be deferred as a result of giving credit to customers. At the same time, payments must be made to suppliers, staff etc., cash must be invested in rebuilding depleted stocks and new equipment may have to be purchased. The net result is that cash receipts often lag cash payments and, whilst profits may be reported, the business may experience a short-term cash shortfall. For this reason it is essential to forecast cashflows as well as to project likely profits. The following simplified example illustrates the timing differences between profits and cashflows: ================================================================ P & L | Cashflows relating to Month 1 for Month 1 | Mth 1 Mth 2 Mth 3 Total ---------------------------------------------------------------- Pounds | Pounds (000s) (000s) | Sales 75 | Receipts from sales 20 35 20 75 Costs 65 | Payments to suppliers 40 20 5 65 Profit 10 | Net cashflow (20) 15 15 10 | Cumulative net cashflow (20) (5) 10 10 ================================================================ This shows that the cash associated with the reported profit for Month 1 will not fully materialise until Month 3 and that a serious cash short-fall will be experienced during Month 1 when receipts from sales will total only 20,000 pounds as compared with cash payments to suppliers of 40,000 pounds. Normally, the main sources of cash in a business are receipts from sales, increases in bank loans, proceeds of share issues and asset disposals, and other income such as interest earned. Cash outflows include payments to suppliers and staff, capital and interest repayments for loans, dividends, taxation and capital expenditure. Net cashflow is the difference between inflows and outflows within a given period. A projected cumulative positive net cashflow over several periods highlights the capacity of a business to generate surplus cash and, conversely, a cumulative negative cashflow indicates the amount of additional cash required to sustain the business. Cashflow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, grants, interest received etc. and then analysing in detail the timing of expected payments relating to expenses, capital expenditure, loan repayments, dividend, tax and interest payments etc. The difference between the cash in- and out-flows over a given period indicates the net cashflow. When this net cashflow is added to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained. With the aid of a computer and suitable software such as BANK-PLAN, a mathematical model can be used to prepare cashflow projections and project short-term banking requirements for a business. The use of a computer-based model reduces the tedium of carrying out numerous repetitive calculations and simplifies the alteration of assumptions and the presentation of results. A cashflow model can be used to compile forecasts, assess possible funding requirements and explore the likely financial consequences of alternative strategies. Used effectively, a model can help prevent major planning errors, anticipate problems, identify opportunities to improve cashflow or provide a basis for negotiating short-term funding from a bank. Generally, when seeking external funding, the time horizon covered by a set of projections should be equal to or greater than the period for which the funding is needed. The greater the amount of funding required and the longer the period of exposure for the provider of these funds, the more comprehensive must be the supporting projections and plan. Whilst BANK-PLAN can be used to support applications for bank facilities of up to a year's duration, it is unlikely to be suitable for raising longer term finance - multi-year loans or external equity - as most financiers would require projected profit & loss accounts and balance sheets in addition to cashflow forecasts. (Invest-Tech has several other planning products, for example, EASI-PLAN, which are suitable for preparing comprehensive and fully integrated medium-term financial projections). Typically, a computer model for short-term bank planning uses assumptions on sales, costs, credit, funding etc. to produce monthly cashflow projections for up to a year ahead. The initial assumptions can be readily altered to evaluate alternative scenarios. For example, a model could be used to explore the extent to which future sales could be increased whilst holding an overdraft within predetermined limits; to assess the effects on cashflow of varying sales, costs or credit terms; or to determine the likely short-term funding requirements for a business. Once assumptions on sales, expense payments etc. have been established, a model can be used to produce the cashflow projections which, in turn, indicate the likely future cash balances or banking requirements. However, the quality of these projections will be completely determined by the standard and reliability of the underlying assumptions. For example, if forecasts for sales, working capital or costs are unrealistic or inadequately researched, then the value of the model's output is greatly diminished. An impressive set of projections is of little benefit if it is unsupported by experience or research, or based on mere speculation. Before using a model for short-term cashflow forecasting, a manager should: - Decide the central purpose of the exercise (internal planning and control, negotiate an overdraft etc.), the target audience (directors, bank manager etc.), the time intervals and horizon (e.g. monthly for twelve months) and the level of detail required. - Check that all the necessary key assumptions and data are to hand and have been adequately researched. - Compile opening balances for all items which will involve cashflows within the forecasting period. - Think through the likely impact of the critical assumptions on the cashflow projections. If necessary, prepare preliminary forecasts manually to confirm their overall direction and consider the underlying strategic issues relating to sales, funding, costs, stocks etc. As a guide, sales forecasts and debtor & creditor terms are likely to have the most profound impacts on short-term cashflows. When preparing cashflow projections, be aware of the dangers of: - Overstating sales forecasts - Underestimating costs and delays likely to be encountered - Ignoring historic trends or performances by debtors etc. - Making unduly optimistic assumptions about the availability of bank loans, credit, grants, equity etc. - Seeking spurious accuracy whilst failing to recognise matters of strategic importance These problems can arise as the result of a lack of foresight or knowledge, or because of excessive optimism. They can lead to under-estimation of the cash and other resources required to sustain or develop a business with potentially disastrous consequences. When forecasting bank requirements and preparing cashflow projections, realistic views should be taken about future prospects. There is often merit in compiling "worst" case projections to complement "most likely" or "best" forecasts and to accept that the "worst" case might occur and to plan accordingly. BANK-PLAN's recalculation facilities can be used to explore alternative scenarios. Once the cashflow projections have been prepared, they should be critically examined and used as a management tool to control and improve the business's expected cash position. Issues which might be examined include the following: - Increasing sales (particularly those involving cash payments) and/or reducing direct and indirect costs; - Reducing the amount of credit given to customers and/or increasing the credit taken from suppliers; - Reducing stock levels and improving control over work-in-progress; - Utilising factoring or discounting facilities to accelerate receipts from sales; - Deferring major capital expenditure or using alternative financing methods, such as leasing, to gain access to the use, but not ownership, of the assets; - Re-negotiating bank loan or overdraft facilities to reduce charges and/or extend repayment periods; - Selling off surplus assets or entering into sale and lease-back arrangements; - Deferring dividends or raising additional equity. Once a set of cashflow projections have been prepared, BANK-PLAN can be used to explore the impact of alternative measures, such as those described above, on the net cashflow and on bank facilities. *********************************************************************** 3. INSTALLING BANK-PLAN ======================= This Section explains how to install and load BANK-PLAN for the first time. BANK-PLAN must be set up as explained in this Section before it can be used. Please check the supplied disk(s) for a READ-1ST.TXT file containing the latest information on BANK-PLAN. View this file (if it is present) as follows: - Switch to the drive/directory to which BANK-PLAN has been installed/unzipped etc. - If it exists, read the READ-1ST.TXT file by typing "TYPE READ-1ST.TXT|MORE" where "|" refers to the vertical pipe symbol (look for it in the left-hand bottom corner of the keyboard). 3.1 First-time Installation ---------------------------- A list of BANK-PLAN's files is contained in README.TXT. All these files should be included in the BANKPLAN.* archive file. a) Confirm that at least 0.3mb of space is available on your hard disk (use the DIR or CHKDSK command) for possible use as "virtual memory". b) Get into the sub-directory on your hard disk where you have copied/installed all BANK-PLAN's files (for example if the sub-directory BANK was used, type "CD BANK" and press RETURN at the DOS prompt). c) If it exists, read the READ-1ST.TXT file by typing "TYPE READ-1ST.TXT|MORE" where "|" refers to the vertical pipe symbol (look for it in the left-hand bottom corner of the keyboard). d) For general introductory information, type "GO". If your PC uses a very old type of display, do not select this option - refer to the next Section (3.2). 3.2 Initial Loading of BANK-PLAN --------------------------------- Note that the try-before-you-buy version of BANK-PLAN is restricted to the loading and saving of one set of assumptions in a file called MASTER.ASS. Once upgraded, it can save or load multiple sets of assumptions in *.ASS files. To directly (i.e. to bypass "GO" the introductory menu system) load BANK-PLAN after it has been installed, proceed as follows: 1. Get into the BANK sub-directory on the drive where BANK-PLAN has been installed, i.e. type "CD BANK" and press RETURN at the C:\> prompt if BANK-PLAN was installed onto a hard disk drive called C. 2. If it is planned to print BANK-PLAN's graphs, run the DOS "GRAPHICS" program (see Section 6.4 below for further info.). 3. Type "BP MASTER" (ensure that a single space is inserted between BP and MASTER) and press RETURN. Wait whilst BANK-PLAN loads itself together with specimen projections on a file called MASTER.ASS. 4. After a short time the initial help screen for BANK-PLAN will appear. Press RETURN to skip this screen and wait a few moments for BANK-PLAN's Main Menu to appear. If the video display is unsatisfactory, press I (for Initialise) from BANK-PLAN's Main Menu and then V (for Video) and select a different type of display. If using a LCD display, BANK-PLAN's "on-screen" cursor may not be visible until the display has been reset to L (for LCD/B&W) within the Video sub-menu. To quit BANK-PLAN, press G (for Goto) if it is necessary to get back to BANK-PLAN's Main Menu, then press Q (for Quit) from the Main Menu and give "Y" responses to the subsequent questions. *********************************************************************** 4. BASICS OF BANK-PLAN ====================== This Section describes in detail all the basic commands and features of BANK-PLAN and explains how to accommodate different types of video displays and printers. 4.1 Loading BANK-PLAN Projections ---------------------------------- To start using BANK-PLAN, get into the BANK sub-directory by entering "CD BANK" and pressing RETURN at the hard disk's root directory prompt (e.g. C:\>). Note: The shareware version of BANK-PLAN does not permit the saving of new files - you are restricted to changing, loading and saving the supplied assumptions file called MASTER.ASS. If you remotely upgrade your existing copy of BANK-PLAN to the full version, you will be able to create and save new files as well as access the MASTER file which may contain assumptions prepared while you were evaluating BANK-PLAN. To load BANK-PLAN together with the MASTER.ASS file), type "BP MASTER" (ensure that a space is inserted between BP and MASTER), press RETURN at the C:\BANK> prompt and await the appearance of BANK-PLAN's initial help screen and Main Menu. The syntax for loading a BANK-PLAN model is as follows: BP [X:]ANYNAME (Insert a blank space immediately after BP) The following is an explanation of the make up of this command line: BP is a simple batch file which loads BANK-PLAN's two main files (Bank.exe & Plan.ovr). [X:] is optional and refers to the disk drive/path containing ANYNAME. It needs to be used only when ANYNAME is not on the same drive or sub-directory as BANK-PLAN's other files, for example, when using a second hard disk drive. If ANYNAME resides on a different sub-directory to that containing BANK-PLAN, the path should be entered immediately before ANYNAME. For example, to load an ANYNAME file which is located in drive D in a sub-directory called PRIVATE, use the following command line: BP(space)D:\PRIVATE\ANYNAME ANYNAME (max. 8 characters) is the name of the file containing all the assumptions relating to a specific set of cashflow projections. BANK-PLAN automatically adds a file extension .ASS to ANYNAME. For example, to load BANK-PLAN along with projections for a subsidiary company called ABC-LTD (previously saved as a file called ABC-LTD.ASS in the same sub-directory as BANK-PLAN), the command would be as follows: BP(space)ABC-LTD If, in future sessions, a model's file name cannot be remembered, simply type "BP(space)X" and press RETURN at the C:\BANK> prompt and wait until the "File does not exist" message appears. Press RETURN to remove this message, use the cursor to highlight the required file from the list which automatically appears on the next screen, and then press RETURN to load it. BANK-PLAN always looks for its help system file (BANK.HLP) on the same disk/sub-directory as is used to hold its assumption files (ANYNAME.ASS). If the help file is not found, an error message "Help File Not Found" will be displayed. To restore the help facility, copy BANK.HLP onto the disk/sub-directory containing the assumptions files (ANYNAME.ASS). 4.2 Key Instructions --------------------- The following instructions are fundamental to using BANK-PLAN. If necessary, refer to the first set-up task described in Section 4.3 below to change the video display. When using BANK-PLAN always ensure that the SCROLL LOCK key is off. Load BANK-PLAN along with the specimen assumptions in the previously created assumptions file MASTER (i.e. enter "BP(space)MASTER") and explore and experiment using the instructions given below. Do not make any changes to the assumption values in MASTER for the time being. # To move around BANK-PLAN's menus, either use the cursor keys to locate the cursor over a specific menu item and press RETURN or type the first capital letter (displayed in red on most colour displays) of the menu item's name (without pressing RETURN). From the Main Menu, experiment by pressing A (for Assumptions), moving the cursor down/up the sub-menu to a specific report and then pressing RETURN to select it. When viewing a report, use the cursor keys to move the rectangular or flashing cursor around it. The computer will "beep" when the boundary of a report has been reached. A mouse can be used to select menu items (press left-hand button to select an item) or to move around reports displayed on the screen. # All BANK-PLAN's formulae and most of its variable descriptions have been protected and secured to prevent any possible accidental changes. # A user can enter data or make changes to assumptions only within the unprotected areas of the six Assumption Reports. These are shown with light coloured or white backgrounds on most displays. Attempts to enter data in protected (i.e. secured) cells may be frustrated by a "secured cell" error message (press RETURN to clear). To enter an assumption value, place the cursor at the desired position within an unprotected area, enter the value and press RETURN. # To get back to the Main Menu from within a report, press the F10 function key (on most computers these function keys are located along the top or left side of the keyboard). Alternatively, use one of the other function keys (F2 to F4), as indicated by the function key strip at the bottom of the screen, to directly call up a sub-menu. # Pressing G (for Goto) or RETURN when the cursor is at the first item in any sub-menu always brings a user back up the menu chain to the Main Menu. # If menus unexpectedly disappear at any stage, press F10 to bring up the Main Menu. Alternatively, press a function key (F2 to F4) to bring up a sub-menu and press RETURN or G (for Goto) one or more times to get back to BANK-PLAN's Main Menu. If a system error should occur due to conflicting commands etc. being issued to BANK-PLAN, it may be necessary to press CTRL+BREAK (i.e. press and hold down the CTRL key, then press the BREAK key and release both keys) to clear the error and then press F10 to retrieve the Main Menu. Care should be taken to ensure that command conflicts are not provoked by issuing simultaneous contradictory instructions using the pop-up menu and function key menus. To save a set of projections on disk, press F (for File) at the Main Menu to get into BANK-PLAN's File sub-menu. This offers a range of options including Replace, Backup, New etc. for saving projections using either an existing or new file name. Note that you cannot access the File New option with the shareware version of BANK-PLAN. When using the file commands, take care never to attempt to replace or back-up a non-existent file, or to create a new file where a file with the same name already exists. The second line of BANK-PLAN's screen display shows the name of the currently loaded file and its disk/directory location (path). # When using the File Replace command, BANK-PLAN overwrites the existing file with a new version and it does not create a back-up copy. # File Backup renames the current file by changing its extension name from .ASS to .BAK before saving the updated copy onto disk. If necessary the back-up file can be changed back to an .ASS file using the DOS "Rename" command. # When using the File New command to enter a new file name, its name (with a maximum of 8 characters) can be edited using the Backspace key. # When using E (for Erase), be sure to only erase files with the .ASS file extension otherwise key program files could be lost. Press F10 after erasing a file in order to return to the Main Menu. # Use D (for Default) to change the default (normal) drive and/or directory (i.e. path) which BANK-PLAN uses for holding assumption files (MASTER etc.). If BANK-PLAN is being used on a computer with a hard disk which can be accessed by other people, a user may wish, for security reasons, to always save assumption files on a removable disk rather than on the hard disk. The default drive should be changed to refer to this disk drive by pressing F (for File) and D (for Default) from the Main Menu and editing the indicated path. To completely exit from BANK-PLAN, press Q from its Main Menu. Be sure that the assumptions have been saved first ! To discontinue printing a report at any stage, press CTRL+BREAK, then use the printer's controls to clear its buffer and, if necessary, press F10 to retrieve the Main Menu. 4.3 Initial Set Up Tasks ------------------------- At this stage, a new user should undertake the following once-off tasks from within BANK-PLAN's Initialise sub-menu using an unaltered copy of the original model supplied with BANK-PLAN. For example, use MASTER but do not make any changes to the assumption values in MASTER for the time being. The set up tasks relate to the video display and printing. They are summarised in the following diagram and then explained in detail. ================================================================ Task (Sub-sections) Remarks ---------------------------------------------------------------- Select video display May not be necessary as BANK-PLAN (4.3.1) automatically detects most display types Specify set up strings for printing reports Manual explains how to set up both (4.3.2 & 4.3.3) a laser and a dot-matrix printer Specify other printer settings May not be necessary as the supplied (4.3.4) defaults may prove satisfactory Print reports For test and reference purposes (4.3.4) ================================================================ If necessary, re-load BANK-PLAN as follows: Get into the BANK sub-directory by entering CD BANK at the hard disk's root directory prompt (e.g. C:\>). Load BANK-PLAN with the previously saved working copy of the specimen budget (MASTER), by typing "BP(space)MASTER", press RETURN to skip the initial help screen and await the appearance of BANK-PLAN's Main Menu. 4.3.1 Video display ------------------- With BANK-PLAN's Main Menu on the screen, check the video display. If it is satisfactory, skip to sub-sections 4.3.2 or 4.3.3 below to set up your printer. If you need to change the video display, proceed as explained immediately below. Choose the most appropriate video display. Press I (for Initialise) from the Main Menu and then V (for Video) and select from the three types of display listed. For most colour monitors, BANK-PLAN uses the following display settings: =============================================================== Letters Background --------------------------------------------------------------- Secured values, formulae and fixed variable descriptions Grey Blue Inputted values Blue Light Blue Changeable descriptions Blue Light blue Descriptions with Help Notes Bright blue Blue =============================================================== For most B/W, LCD or mono monitors, BANK-PLAN uses the following display settings: =============================================================== Letters Background --------------------------------------------------------------- Secured values, formulae and fixed variable descriptions White Black Inputted values Black White Changeable descriptions Black White Descriptions with Help Notes Bright white Black =============================================================== Precise settings and appearances may vary from monitor to monitor. If the white and bright white letters cannot be distinguished, try changing the monitor's contrast settings. If it proves difficult to display BANK-PLAN, or to see its cursor when viewing reports or Help Pages, try changing the video display (from the Main Menu press I, V etc.) or review the instructions in Section 3.2 above. If a Hercules monitor is being used, it is not possible to display the graphs on the screen. A special utility supplied with the fully-operational version of BANK-PLAN enables the graphs to be displayed. If it is planned to always use BANK-PLAN with a monitor which necessitates resetting of the display each time the program is used, it is possible to alter the batch file (BP.BAT) which loads BANK-PLAN to make the necessary changes automatically. This procedure is fully explained in BANK-PLAN's printed manual. 4.3.2 Dot-matrix printers ------------------------- If using a dot-matrix printer, enter a setup string for the printer so that it will automatically print BANK-PLAN's 12-month reports using a condensed pitch. For details of the correct string to use, refer to the printer manual or a dealer. If an alternative string is not immediately accessible, ignore the following instructions for the time being and see what happens when the string supplied with BANK-PLAN for condensed print (\015) is used. From the Main Menu, press I (for Initialise) to get into the Initialise sub-menu and press S (for String); note the supplied string and press any key once; enter a string in response to the prompt which will appear on the screen (or press RETURN to accept the offered string); and then wait a few moments whilst the string is installed. Skip to Section 4.3.4 for guidance on other printer set ups. 4.3.3 Laser/page printer ------------------------- If a laser/page printer is being used, the recommended approach is to select a small pitch in conjunction with landscape orientation to accommodate the 12-month reports. This switching to landscape orientation may also involve changing the page length. The easiest, but possibly least satisfactory, method is to use the printer's controls to make the set-up changes as explained below: First, remove the printer string supplied with BANK-PLAN by pressing I (for Initialise) and S (for String) from the Main Menu and press any key to skip the explanatory note. Use the Backspace key to erase the string as soon as it is displayed in a box on the screen and wait a few moments whilst it is being removed within BANK-PLAN. When about to print a BANK-PLAN report, use the printer's own controls to set or re-set the font and orientation, for example, set the font size to 16.66 cpi, use landscape as the orientation and, optionally, increase the line pitch from 6 to 8 lines per inch. Refer to the printer's manual for guidance. An alternative (and much slicker) approach is to determine the composition of the printer setup string which will achieve the desired setting for the 12-month reports by referring to the printer's manual. Then, by entering this strings and the corresponding page length into BANK-PLAN, all the 12 month reports will be printed automatically using the correct settings. To do this, proceed as follows: From the Main Menu, press I (for Initialise) to get into the Initialise sub-menu, press S (for Strings) and press any key to skip the explanatory note. Then, enter the new string in response to the prompt which will appear on the screen. If using a HP LaserJet printer or compatible, the following string should give the desired results with A4 paper: \027&l1o8D\027(s16.66H (16.66 cpi, landscape and 8 lines per inch) Enter the string exactly as indicated. ("0" is the number zero, "l" refers to the lower case letter L, 1 is the number one, and "o" is the lower case letter O as in Oh!). DOUBLE CHECK your entries. If the printer has a non-proportional font greater than 16.66 cpi, all BANK-PLAN's reports can be printed using portrait orientation. 4.3.4 Other printer setups --------------------------- Depending on your printer type, check through the following instructions and then try printing a report to confirm that the printer has been satisfactorily set up. 1. Set the correct printer margins by choosing M (for Margins) from within the Initialise sub-menu. Select a margin to be changed, enter a new value, and press RETURN. Repeat this procedure to change other margins. New users can opt to ignore this step and try the margin settings supplied with BANK-PLAN. 2. Printer page lengths can be changed by selecting L (for Length) from within the Initialise sub-menu and entering an appropriate value. The default length for continuous (8," x 11" ) or A4 paper is 66 lines and should be satisfactory for most types of impact printers. For a laser printer, the length should be changed as follows: For landscape orientation with 6 lines per inch: 43 For landscape orientation with 8 lines per inch: 58 3. To change other printer defaults for the interface and paper handling, choose D (for Default) from within the Initialise sub-menu. As supplied, BANK-PLAN uses the following defaults which can be altered one at a time by the user: - Interface set for a parallel printer (LPT1:) - Give line feed after RETURN - Do not wait for paper to be loaded at a new page. 4. Finally, go to the Main Menu and use F (for File) and R (for Replace) to save the current set of assumptions, with the new printer settings, as an updated copy of MASTER. Having set up the printer, test the printing of any report. From BANK-PLAN's Main Menu, press P (for Print) etc. ALWAYS ensure that the printer is loaded with paper and 'on line' before using BANK-PLAN's print sub-menu. If successive reports tend to creep down/up the page during printing, reduce/increase the page length being used by BANK-PLAN by the number of lines of creep. As BANK-PLAN sends extended ASCII characters to the printer no other printer configuration should be necessary. However, if the printer fails to print the £ pounds currency sign, it may be necessary to switch the printer to using a different character set or symbol set. Refer to the printer's manual for guidance. If, during printing, problems of alignment, line or page skipping, line wraparound etc. are encountered, refer to the guidance notes in the Help Pages dealing with "Resolving printer problems" (display the Main Menu, press F1 for the index to Help Pages, place the cursor over this item and press RETURN). Then, either use the I (for Initialise) sub-menu to change the printer set-up, or make changes directly to the printer using its own controls. A final initial task which a new user may wish to perform at this stage, is to print BANK-PLAN's six 12-month reports containing the specimen assumptions. If necessary, reload a copy of MASTER which has been previously set up and saved as indicated in steps 3 to 7 above. Put the printer online, prepare it with paper and then press P (for Print) from the Main Menu and then A (for All) to print BANK-PLAN's six Assumption Reports. Even though it is not possible to print BANK-PLAN's three output reports with the shareware version, these reports can still be viewed on the screen and their related graphs can be displayed or printed (see Section 6.4 below). To stop printing at any stage, press CTRL+BREAK. If any reports have not printed satisfactorily, refer back to steps 1 to 4 above and review the printer set-up (sub-sections 4.3.2 or 4.3.3). *********************************************************************** 5. EXPLORING BANK-PLAN ======================= This Section describes all the main facilities provided by BANK-PLAN by means of introductory exercises. 5.1 First Exercise ------------------- This exercise explains how to use BANK-PLAN's menus, locate reports, enter assumptions, access help facilities and use the primary function key commands. So long as the assumptions file (i.e. MASTER.ASS) is not saved, no harm can be done by working through the guidance notes below and altering assumption values. To start, load a copy of the model which was set up in the previous Section, namely MASTER, by typing "BP(space)MASTER" at the BANK sub- directory prompt. BANK-PLAN is divided into a series of reports containing assumptions and calculated results. Begin by exploring these reports with the aid of the menus. To access any report, get into BANK-PLAN's Main Menu (press F10 if necessary) and press A (for Assumptions) or R (for Reports) to view the range of reports. Use either of these sub-menus to select and access a particular report (by moving the cursor and pressing RETURN or pressing the first capital letter). Once in a report, use the cursor keys to hop from cell to cell and explore the contents of the report. Use the computer's PgDn key to move the cursor quickly down a report and use the CTRL+LEFT or CTRL+RIGHT (or TAB) keys to step across a report. Alternatively, use a mouse to scroll around a report. Notice that when viewing a Report, a function-key menu strip always appears along the bottom of the screen. Any of these primary function keys (F1 to F5) can be used to directly access sub-menus or operations without having to revert to the Main Menu. Note that the Summary Profit & Loss Accounts have been derived from the sales forecasts and projected cash outflows relating to expenses etc. As a consequence, they have not been compiled on the normal basis of accrued expenses with the result that some expenses may not be properly allocated between months. The indicative profit for each month excludes depreciation, interest paid on long-term debt, finance lease charges, capital grant amortisation, profits/losses on the sale of fixed assets, corporation tax and dividends. Note that the "Cost of sales" takes no account of any stock-building. When finished with a report, press the function key F10 to get straight back to the Main Menu or use one of the other function keys (F2 to F4) to directly display a sub-menu which will pop-up on top of the report. In the case of the Assumption Reports, observe that assumptions can be entered only in unsecured cells in rows of cells adjacent to the <<->> and ->> arrows and shown in reverse video on most displays. Variable descriptions in the left-hand column of some reports opposite the <<->> arrows and shown in reverse video can be changed by the user or left blank. Zero values are signified by the .. symbol and automatically change to blank spaces during the printing of reports. The following rules about entering assumptions must be observed: - BANK-PLAN will not permit the entry of values other than in cells or areas (blocks of cells) which have been designated for inputted assumptions. Otherwise, a "secured cell" error message may be displayed. - Never try to enter letters instead of numbers into cells which have been reserved for numeric entries. Clear the error immediately by pressing the Backspace key until the computer beeps and then press RETURN twice to complete the task. - When entering a value into a cell, always complete the entry process by pressing RETURN. Never start to enter a value and then, in midstream, try to invoke a menu or function key option. BANK-PLAN allows "in-cell" arithmetic in unsecured cells. For example, "2*3-4" could be entered into a cell and the result, "2", would be displayed as soon as the RETURN key is pressed. The usual "calculator rules" about priority and bracketing apply. If a mistake is made when entering a value in a cell, use the Backspace key to remove it and press RETURN. BANK-PLAN incorporates extensive "online" help facilities which can be accessed as follows: # Use the primary function key F1 at any stage to access a context related Help Page. Alternatively, access the main Index to Help Pages by pressing F1 when BANK-PLAN's Main Menu is being displayed. Once in the Index, use the up/down cursor keys to move the special Help Page cursor bar to a specific item and press RETURN. To exit from a Help Page, press the ESC key or refer to the instructions at the bottom of the page. First-time users should check the Help Pages for "Details of latest changes to BANK-PLAN". # Variable description shown with "brightened letters" in the left-hand column of reports contain Help Notes relating to the brightened description. A Help Note can be accessed by placing the cursor over a brightened description, pressing RETURN and then pressing the keyboard's PgDn key. Press PgUp to clear the Note, or simply let it scroll off the screen or be tiled over by another Note. If brightened items cannot be distinguished, try changing the monitor's contrast. # When viewing a Report, press F1 to gain access to help regarding its origin or contents. 5.2 Second exercise -------------------- This exercise introduces a second set of function key commands which can be accessed by holding down the computer's CTRL key before pressing a function key. These can be used to speed up the entry of assumptions etc. With some slower computers there might be a very slight delay before these function key commands take effect. As soon as the CTRL key is pressed a different menu strip appears at the bottom of the screen. To use a CTRL function key, press and hold down the CTRL key whilst pressing one of the listed function keys. These work as explained below whenever a report is being displayed on the screen: CTRL+F1 gives access to context-sensitive Help Pages relating to the CTRL function keys. CTRL+F2 enables a user to automatically mark the cursor's current position, move to a new location anywhere in BANK-PLAN, perform a task or tasks (such as checking, entering or changing assumptions), and then jump back to the initial position. Try pressing CTRL+F2, move the cursor sharply downwards, change an assumption and then press ESCAPE to jump back to the start again. After CTRL+F2 has been invoked, the cursor can be moved freely around any of BANK-PLAN's assumption and output reports. Avail of this facility to become familiar with the sequence of reports and their locations relative to each other. CTRL+F6 (or F6 by itself) can be used to speed up the entry of constant values across a row reserved for assumptions in an Assumption Report. To use it, place the cursor in a row containing a ->> or <<->> arrow and in the column for the "first" month. Hold down the CTRL key, press the F6 key and release both keys (or, more simply, press F6 by itself). Next, enter the constant value as directed, and press RETURN. This value will be automatically copied across the remaining months and the cursor will move down one row. On some slower computers, allow a few moments for this command to take effect. CTRL+F7 can be used to erase assumption values in cells within a rectangular assumption area. To try it, get into an Assumption Report and proceed as follows: Position the cursor at a corner of the "unprotected" area whose values are to be erased. Press CTRL+F7, move the cursor to the diagonally opposite corner of the "unprotected" area to be erased and press RETURN. CTRL+F8 can be used to change the number of decimal places for either calculated or inputted values. Position the cursor at a corner of the area to be re-formatted; press CTRL+F8; enter the desired number of places; move the cursor to the diagonally opposite corner of the block of values to be formatted; and press RETURN to finish. If the number of places exceeds a cell's capacity to display them, a string of asterisks (*******) will appear. Use CTRL+F6 again to reduce the number of places. When using the CTRL function keys take great care never to initiate a second function before the previous one has been completed. Please note the following: - With a colour display and some B/W displays, the cursor can be used to "paint" the area to be erased etc. With some mono displays, the cursor may change from a solid dark block to a flashing dash during erasing etc. A user should experiment to gain familiarity with using the CTRL function keys before embarking on a cashflow planning assignment. - BANK-PLAN only permits the erasing of values within unprotected (i.e. unsecured) areas which are shown in reverse video. Otherwise, the command may fail, the computer will beep, or an error message will be displayed (clear by pressing CTRL+BREAK and/or F10). *********************************************************************** 6. USING BANK-PLAN =================== This Section starts by offering some general advice on using BANK-PLAN and explains how to use it to construct cashflow projections. It then discusses specific issues relating to printing graphs and "rolling" projections forward. 6.1 General advice ------------------- On the first occasion that BANK-PLAN is used to produce cashflow projections for a business, curtail the number of monthly assumptions relating to sales, expenses etc. For example, start by entering just single rows of assumptions for sales and only use a few rows for direct and overhead expense payments. If all other sales and overhead assumptions have been erased, the number of assumptions will have been reduced to manageable proportions. Review the results and then progressively add greater detail. BANK-PLAN contains variables and features which may not be required by every user. These can be left empty or with zero values (displayed as .... on the screen). BANK-PLAN runs satisfactorily with only the minimum number of assumptions relating to sales, expense payments, cash movements etc. Starting to construct a cashflow forecast for the first time is likely to reveal some very significant gaps in the information which is required to plan effectively. It may be necessary to review bank statements, accounting records, existing budgets and historic accounts to derive the necessary information. To get going, load a copy of MASTER and erase all its monthly assumptions by using the R (for Remove) command within the Initialise sub-menu. A printout of all the Assumption Reports with all the assumptions erased can be used to facilitate the compilation of assumption data away from the computer. To do this, put the printer on-line and then press P and A from the Main Menu. Note that assumptions should be entered only in rows containing ->> or <<->> arrow signs on a printout and shown in reverse video on the screen. Variable descriptions opposite <<->> arrows and shown in reverse video in the left-hand column of Assumption Reports can be altered by a user (or simply left empty if not needed). Zero values display as ... on the screen and change to blank spaces during printing. Always make regular file copies when building a set of projections by pressing F (for File) and R (for Replace) or B (for Backup). When entering assumptions, make liberal use of the facilities provided by the CTRL function keys especially F6 or CTRL+F6, consult BANK-PLAN's Help Pages and access the Help Notes appended to brightened variable descriptions. 6.2 Structuring A Model ------------------------ BANK-PLAN is already structured to suit a manufacturing business and includes a diverse range of pre-formatted variables which can be used by most types of businesses. BANK-PLAN contains descriptions of variables which should be suitable to prepare cashflow projections for most types of small manufacturers or trading businesses. Whilst many users are likely to use BANK-PLAN exactly as supplied, others may wish to change the descriptions of variables which are displayed in reverse video in the left-hand column of the Assumption Reports. Do not confuse these cells with bright-lettered cells to which Help Notes are appended. To change a variable name e.g. to replace the direct expense item "Consumables" in the Assumption Report No. 1 with "Contract labour", simply place the cursor over the cell containing the description and overwrite it. This change will be automatically copied into other reports when the model next recalculates. When making such changes to descriptions, the replacement must use the exact same units, i.e. 000, as the original, otherwise formulae will be incorrect. 6.3 Model-Building Procedure ---------------------------- To use BANK-PLAN to make cashflow projections for a particular business, proceed as described below. After entering a batch of assumption values, recalculate to check results using the F5 function key. Note that the calculation errors which may be indicated whenever the model recalculates can usually be ignored until all the assumptions have been entered. 1. Erase all existing assumptions. Press I (for Initialise) and R (for Remove) from BANK-PLAN's Main Menu. 2. From the Main Menu, press I (for Initialise) and B (for Basic). Follow the on-screen instructions to enter the number of the first month to be covered by the projections (1 for January, 2 for February etc.); the start of the first year to be covered by the projections; and descriptions of the sales/product groups (maximum of three) most appropriate to the company. If a mistake is made, correct it immediately using the Backspace key, otherwise repeat this procedure. When this basic data has been inserted, it will be automatically entered throughout the model and the appropriate months and years will be incorporated in all the report headings. 4. From the Main Menu, press I (for Initialise) and T (for Title) to give the model a specific title, e.g. "First Attempt". This will be inserted at the top of the screen and on the cover page of reports. 5. From the Main Menu, press F (for File) and N (for New) to save these cashflow projections under a new name, for example, XXX1. 6. From the Main Menu, press A (for Ass) to get into the sub-menu for the Assumption Reports. Press A (for Any) or call up each report in turn to enter forecasts and assumptions. Concentrate initially on entering approximate values with a view to refining them later on. Although BANK-PLAN can handle cashflows for twelve months, shorter term projections can be compiled by entering assumptions for the required months only. Use the facility for "in-cell" arithmetic and the CTRL function keys to quickly enter constant assumption values across the twelve months. Refer to BANK-PLAN's Help Pages and Notes for detailed guidance on entering assumptions. 7. From the Main Menu, press F (for File) and R (for Replace) to save an updated version of the projections to disk. Alternatively, press B (for Backup). 8. From the Main Menu, view graphs (press V etc.), inspect reports (press R etc.) and print results (press P etc.). If necessary, refer to Section 4.3 above to review procedures for changing the printer strings, margins, page lengths etc. being used by BANK-PLAN. With this shareware version of BANK-PLAN, it is not possible to print the projected cashflow and P&L reports. However, these can be inspected "on-screen" via the R (for Reports) menu option and the related graphs can be displayed (V for View) or printed using GRAPHICS. Always maintain a regularly updated file copy of projections to minimise any disruption or inconvenience caused by computer or system faults. To do this, press R (for Replace) or B (for Backup) from within BANK-PLAN's File sub-menu. 6.4 Printing Reports and Graphs -------------------------------- Refer to Section 4.3 above if it is desired to change the printer string, margins, page lengths etc. being used by BANK-PLAN. As BANK-PLAN sends extended ASCII files to the printer, no other printer configuration should be necessary. However, if the printer fails to print reports correctly, review the guidance notes in Section 4.3 and consult the Help Pages dealing with "Resolving printer problems". The MS-DOS Graphics program supplied with DOS can be used to print (dump) the graph currently being displayed on the screen directly to a printer. Only use this approach if the computer has some expanded memory in addition to its base memory of 640k. Try it before using BANK-PLAN with 'real' data (or immediately after having saved a model file), in case the system hangs etc. To use Graphics, load it before loading BANK-PLAN by typing "GRAPHICS" at the hard disk's root directory DOS prompt. Refer to the MS-DOS manual for further guidance on the range of options provided by the Graphics program to accommodate different printer types etc. especially if a laser printer is being used. Having loaded Graphics and then BANK-PLAN, proceed to display one of its graphs on the screen. Make sure the printer is 'online' and then press the SHIFT + PRINT SCREEN keys on the keyboard and wait whilst a very reasonable copy of the graph on the screen is being printed. Try changing the settings used by Graphics in order to improve the appearance of the printed output. If using the Graphics program with a colour monitor to print graphs, the quality of the printed graphs can be greatly improved by temporarily switching, if the monitor permits, the display to Black/White immediately before printing. To make this switch, press I, V & L from the Main Menu. Always maintain regularly updated second copies of a model to minimise disruption or inconvenience caused by computer or system faults. To do this, press R (for Replace) or B (for Backup) from within BANK-PLAN's File sub-menu. 6.5 Advancing projections -------------------------- BANK-PLAN incorporates a facility to "advance" or "roll-forward" assumptions and projections one month at a time. For example, if projections had been originally prepared for the twelve months commencing March, the advance facility would replace March's assumptions & projections by April's and so on for the remaining months. The Advance facility makes BANK-PLAN ideally suited for preparing regularly updated short-term cashflow forecasting and planning. Because most assumptions will not change from month to month, the task of updating projections is greatly simplified. Before using Advance, it might be wise to save a copy of original projections using a file name describing the projections, e.g. called MAR96. To use the Advance facility, press D (for aDvance) and follow the "on-screen" instructions. Once assumptions have been advanced, the following values will need to be updated: Opening balances for VAT and PAYE in Assumption Report No. 4 Opening balances for the current and deposit accounts in Assumption Report No. 5 Opening balances for debtors and trade & sundry creditors in Assumption Report No. 6 and the phasing of their payments As the original assumptions for the "new" twelfth month will now be the same as for the "old" twelfth month, they must be reviewed carefully, paying particular attention to once-off items which will be automatically duplicated in both the "new" eleventh and twelfth months. The original assumptions for the earlier months, particularly sales and major non-recurring expenses, may need to be revised in the light of recent experiences. *********************************************************************** 7. SUPPORT & ASSISTANCE ======================== BANK-PLAN has been supplied as shareware at minimal cost to enable users to try it out before registering etc. We regret that we can only provide support to BANK-PLAN users who have registered with us and secured a copy of BANK-PLAN with its comprehensive manual. Registered users of BANK-PLAN who wish to upgrade to CASH-PLAN, a more sophisticated cashflow planner, can do so at a discount to CASH-PLAN's normal price (see README.TXT). In addition to BANK-PLAN and CASH-PLAN, Invest-Tech offers an extensive range of business and financial planning packages for use by businesses. As the same basic structures, menus etc. are used throughout the product range, conversion from one product to another would be very straightforward for a BANK-PLAN user. General information about these other products is contained in Help Pages within BANK-PLAN and in README.TXT. More comprehensive details can be obtained by contacting Invest-Tech. Invest-Tech also provides a model-building service on a fee-paying basis to expand or modify BANK-PLAN to meet a user's particular requirements. This work is undertaken on a confidential basis and to the highest professional standards in accordance with the Code of Professional Conduct of the Institute of Management Consultants in Ireland and the UK. Invest-Tech would welcome feedback from users and invites suggestions relating to BANK-PLAN. *********************************************************************** BANK-PLAN (c) Copyright Invest-Tech Limited 1993-97 All Rights Reserved Invest-Tech Limited 27 Ardmeen Park, Blackrock, Co. Dublin, Ireland Irish Tel: 01-283 4083 UK Tel: 01232-315454 (Call 9 to 9 weekdays and 10 to 6 weekends - GMT/BST) Fax: 278 2391 Fax codes: Irish:01- UK:00-353-1- Inter'l:+353-1- CompuServe: 100606,2665 Internet: brianf@iol.ie WWW URL: http://www.planware.ie/resource/planware *********************************************************************** To print this file, type "PRINT MANUAL.TXT". *** End of MANUAL.TXT file ***