CASH FLOW FORCASTING

cashflow is the 'lifeblood' of the business
cashflow forcast
1. shows the movement of cash around a business. (where the money goes)
2. is a prediction not a fact.
money out(payments)
1. Purchases
2. Wages
3. Tax
4. Rent
Money in (receipts)
1. Sales
2. Loans
3. Government grnats
4. Interests on savings
NET CASH FLOW=MONEY IN-MONEY OUT
OPENING BALANCE
1. the amount of cash the business has at the start of the month
Closing balance
1. this is the amount of cash the business has at the end of the month.
2. Opening balance+ncf
3. Closing balance=start balance for next month
flow= the amount of money flowing into and out of the business over a period of time
sources of cashflow forecasting
1. Cashflow statements
2. consumer research
3. banks
4. consultants
5. Previous cash flow forecasts

Resource summary

	Created by charlie.smith97 over 10 years ago