Business Plan 101: Financial History

The financial history is the last financial statement that needs to be in your business plan. It is an overall summary of the financial disposition of your company from start to finish. The financial history will vary depending upon if you have a new business or if you have an established business. The information that is included in this document will encompass all of the previous financial documentation that you put together for this business plan.

If your company is a new business then you will only have projections for your financial history. Because it is a new business, if you apply for a loan, a bank will ask for your personal financial history because it is an indication of how you handle your personal finances and presumably and indicator of how the finances of your business will also be managed. If it is an established business, you will be required to present a business financial history that will show how viable your business is. The information that you need to put together for your financial history is much of the same information that you needed to put together other financial documents.  You will need to show your assets, liabilities, and net worth. You will be asked for any contingent liabilities which are debts you may owe in the future. You will need a profit and loss statement, any real estate holdings the company may have, how the company is structured, any audit information, and detailed information of the insurance coverage for your company.