Handling distributions from partnerships in annual cash flow, dealing with error messages in loan presentations, completing a typical year balance sheet, and more are discussed in this edition of Frequently Asked FINPACK Questions with the FINPACK Support Team.
How do I handle Distributions from Partnerships in an Annual Cash Flow?
If the partnership is the main business represented in the cash flow, you could show this under Family living / Owner draw in the Other Cash Flows section. If this is a secondary partnership, you could show this under one of the personal items also in that section (Personal business income or Personal cash dividends).
What does the message ‘Bookmark with that name already exists’ mean in my presentation?
This error message often occurs when you have a duplicate loan within the Collateral Analysis or within your Balance Sheet. To resolve this error message, you can simply delete the duplicate loan that is showing in either the Balance Sheet or the Collateral Analysis.
Is there a way to complete a ‘typical year’ Cash Flow?
There are two approaches to accomplish this in your cash flow projection. Either create a blank detailed balance sheet in data sources and use this as the balance sheet tied to the cash flow projection OR use the existing detailed balance sheet and then work to minimize accrual adjustments. Both approaches will allow you to focus on this year’s cash flow projection and not bring accrual adjustments into the analysis.
Minimizing Accrual Adjustments
- If utilizing the customer’s existing detailed balance sheet, do not tag any operating loans on their balance sheet as ‘annual operating’. Doing so will begin the operating loan analysis in the cash flow projection to begin with a $0 balance. If you are assuming the existing operating loan (from the balance sheet) will stay the same year over year, no principal payment would need to be made in loan data entry in the projection. Include the estimated interest payment for projection purposes.
- In the cash flow projection, sell and/or feed all of the year’s crop production. Then no accrual adjustments will be included from inventory changes. Keep the beginning and ending values per unit on commodities the same as well. Use the same approach for livestock enterprises and avoid accrual adjustments by selling all production.
- In the ending balance sheet data entry of the projection, keep prepaid expenses, accounts receivable, etc. balances the same on the ending balance sheet.
These options will help you as a lender prepare a ‘typical year’ cash flow that minimizes accrual adjustments when preparing cash flow projections.
Why can’t I import my CSV file for Machinery & Equipment?
When this type of issue occurs, it is usually due to the Column Headers not being named properly for FINPACK to read, or the number values contain unnecessary punctuation, such as commas and periods. To resolve this issue, make sure Column Headers are in accordance with the guidelines located here, and also remove any unnecessary punctuation in your number values.
Where can I find Balance Sheet input forms?
Blank input forms for items such as Balance Sheets can be found here. We also include instructions on how these input forms should be completed to make it easier for your clients to utilize. If you have an existing balance sheet from a customer, you can also generate an input form that includes their current numbers.
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