Forcasting cash flow

Forcasting cash flow

1. Cash - notes,coins and money in the bank.

2. Cash flow - the flow of cash into and out of a business

3. Inflow- the cash into a business, its reciepts.

4. Outflow - the cash flowing out of a busines, its payments.

5. Net flow - the reciepts of a business minus its payments.

6. Insolvency - when a business can no longer pay its debts.

7. Cash flow forecast - a prediction of how cash will flow through a bsuiness in a a period of timein future.

8. Opening balance - the amount of money in a business at the start of a month.

9. Closing balance - the amount of money in a business at the end of he month.

10. Cumulative cashflow - the sum of cash that flows into a business over time.

11. Trade credit - when a supplier gives a customer a period of time to pay a bill (or invoice) for goods and sevices once they have been delivered.

12. Stocks - materials that a business holds. Some could be matrials waiting to be used in a production process and some could be finished stock waiting to be dilivered to customers.