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Home > Creating a Business Plan > Labor Cost

Labor Cost

FINANCIAL PLAN > Expenses > Labor cost

First you should check whether the costing model is appropriate. You can choose between three cost models with the software:

 1. model - 
 input parameters: Labor cost
 2. model -
 input parameters: Wages and salaries, Social security costs (%)  
 3. model -
 input parameters: Headcount, Average monthly salary, Social security costs (%) 

To view/change the cost model, click on the "Cost model" link. Select the appropriate model, then click "Done".

Cost model no 1 input parameters
Labor cost Enter the labor cost (wages and salaries plus social security cost, if any).
To divide the labor cost in more detail, you can enter several rows, e.g. dividing the costs by "Managers," "Engineers," "Workers," etc.
Payable period
(in days)
Enter the average number of days during which the wages and salaries are paid. Payments are reflected accordingly in the cash flow projections.
This is used to calculate values for the balance sheet item "Employee-related liabilities." 
Employee-related liabilities = (Payment period, days x  Personnel expenses) / 30
Grant financing: financing level (%) When labor cost is covered by grant financing, enter the financing rate (%).
Financing rate reflects the relative share of labor cost  that is covered by government assistance.

An alternative option is to enter grant financing directly, with absolute figures. To do this, you can use worksheet FINANCIAL PLAN > Revenue > Other operating revenue
Grant financing: collection period
(in days)
Enter the estimated number of days from incurring the expenditures to the receipt of grant financing. Accordingly, the receipt of support is recorded in the income statement (item "Other operating revenue") and cash flow statement.


Cost model no. 2 input parameters (those that differ)
Wages and salaries Enter the cost of wages and salaries (as gross wages).
To divide the cost of wages better, you can enter personnel expenses on several rows, e.g. dividing by "Managers", "Engineers", "Workers", etc, or by business departments.
Social security costs (%) Enter the social security tax rate subject to gross wages (%).
This indicator can be used to calculate various costs for the employer, calculated on gross wages (social tax, unemployment insurance, etc).


Cost model no. 3 input parameters (those that differ)
Headcount
Enter the number of employees in a business or its department.
In case of a larger business, you should first enter job titles, e.g. "Managers," "Engineers," "Workers," etc. and then show the number of people in each work group. You can also classify by departments.
Average monthly salary Enter average gross wages per month per employee.

NB! Regardless of the selected period (year, quarter, month), you should enter the number for monthly salaries. Personnel expenses for years and quarters will be calculated automatically.


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Worksheet Features
Saving and Team Work
Publishing and Sharing
Team Building
Grant Financing
Other Operating Expenses