Cash Flow Forecast
We found that most SMEs do not make cash flow forecasts. It is time to start doing this and strengthen the company’s management of cash flow.
Accountants who have not done cash flow forecasting can download and use it.
This is credited to ACCA’s website – Sample Cash Flow Forecast
How to use a cash flow forecast template
The cash flow template will show you how cash flow works, and it should be modified to suit your own business.
All numbers entered are actual cash. This includes bank payments and receipts, checks, bank transfers, cash payments and receipts-all of which should be included in your opening balance.
Then complete the opening balance in the shaded area, which includes bank, loan, and cash balances, which should be placed in the table:
- Monthly cash flow forecast monthly actual cash flow
This provides a starting point for the remaining cash flows. Next, enter your 1-month forecast-break down all sales into elements of your specific business-and do the same for spending. Calculate your data based on your own experience and the price you expect to receive or pay. You can modify these sections to reflect your business needs.
Repeat this process for actual cash flows; the numbers entered here are based on actuals. It should then automatically appear on the third page:
- Monthly cash flow forecast / actual comparison
Complete the real analysis work here and will determine the accuracy of your forecasted numbers. Forecast tables are used to determine when a cash shortage may occur before an event occurs and help determine whether you need additional funding.