How to model an equity raise in sherloc

To bring an equity raise into your forecast, record each payment as a funding item. sherloc adds it to your balance sheet and your cash for you.

1. Confirm your raise details

Note the total amount you’re raising and when it’s expected to land: as one lump sum, or staged across several tranches.

Example: a £200,000 raise landing in two tranches: £100,000 in month one, £100,000 two months later.

2. Record the incoming funds

Open the Capital & Funding tab on your forecast (the same tab sits under Business Data) and select New Funding. In the Add capital item window, enter a Source name and choose Equity investment as the Type.

Under Payment schedule, add one row for each tranche, with the Month it lands and the Amount (£). Use Add Payment for each further tranche, then select Save.

3. Check your balance sheet

Open your Balance Sheet. sherloc adds the raise as a line called Capital and raises your cash at bank by the same amount, from the month each tranche lands onwards. You don’t need to add anything to your share capital line yourself, as doing so would count the raise twice.

Funding items carry the raise forward in every month after it lands. An assumption set on a single month with Specific months applies to that month only.

4. Check the numbers

Look at your balance sheet to confirm the Capital line and your cash at bank have both risen by the right amount, in the months you expect, and stay there in the months after.