Track a project's budget against actual
Set budget lines for a project, match transactions to them, and run the feasibility calculator.
Open the Finance Model tab
Open the project. Click the Finance Model tab.
The sub-tabs are Overview, Transactions, Timeline, Loans, Duty & Fees, Feasibility and Attachments.
Set the budget
On Overview, click Add budget line. Pick the Category, type the Label and the Budgeted amount. Add the Xero account code if you want transactions matched by code.
Click Categories to add your own cost categories. Revenue is fixed and cannot be renamed.
Click Stamp duty & fees to add the duty and title fees for the purchase as budget lines.
Finance Model
Budget vs Actual
| Category | Label | Budgeted | Actual | Variance | Tasks | |
|---|---|---|---|---|---|---|
| Acquisition | Land purchase | -$8,200,000.00 | -$8,200,000.00 | $0.00 | ||
| Construction | Head contract - superstructure | -$12,400,000.00 | - | - | ||
| Professional Fees | Architect and engineering | -$980,000.00 | -$74,000.00 | +$906,000.00 | ||
| Finance Costs | Senior debt interest | -$1,650,000.00 | - | - | ||
| Contingency | Construction contingency (8%) | -$992,000.00 | - | - | ||
| Revenue | Apartment presales | $31,500,000.00 | $3,200,000.00 | -$28,300,000.00 | ||
| Total | $7,278,000.00 | -$5,074,000.00 | -$12,352,000.00 | |||
Match transactions
Click Transactions. Connect Xero under Admin, then Xero, to pull the bank feed in. Without Xero, add transactions by hand.
Pick the budget line for each transaction. Actual and Variance on Overview update.
Run the feasibility
Click Feasibility. Pick the GST method. Type the dwellings, sizes, sale price, duration, construction rate and cost percentages.
The results show Return on equity, Required equity, Verdict, Net profit, Margin on cost and the rest.
Click Sync to Budget Lines to write the calculated costs into the budget. Click IC Memo for a printable summary.
Feasibility Calculator
IC MemoReturn on equity
57.4%
Required equity
$8,581,147.02
Verdict
Feasible
Net profit
$4,928,075.77
Margin on cost
20.1%
Total development cost
$24,501,015.14
Gross revenue
$31,500,000.00
Peak debt
$15,919,868.12
Break-even price / dwelling
$308,336.17
Max supportable land price
$23,625.40
Simplified IRR
19.9%
Share it
On Overview, click Share. Type a Title and an Access code (optional). Copy the link.
A person with the link sees the budget and feasibility but not the transactions.