Financial Planning- How to produce Cashflow Statements

DELIVERED BY:BSS Management ConsultancyVisit www.businessservicessupport.com Tel: 0845 226 4315

Financial Planning- How to produce Cashflow Statements

copyright© to Business Services Support Limited 2011

Putting Together of Cashflow Forecast

WHAT IS CASH-FLOW FORECASTING

A projection of actual cash receipts against cash payments

A measurement of liquidity


Putting Together The Cash Flow Forecast

Key questions:•When do you expect to receive the sales income in your sales forecast? • When do you expect to pay suppliers for goods and services you will purchase?

•What will be your credit policy? In short, will customers be given credit and if so how many days?

•Are the credit terms extended to customers too generous or competitive?

•Is there a plan to raise capital for the business from third parties?

•Who are the main financiers of the business?


Cash Flow Forecasts In Practice

Description Jan- March 07 April-June 07 July-Sept 07 Oct-Dec 07 Total

£ £ £ £ £

Balance brought fwd -12630 -10260 -12890

Cash Receipts

Sales income- training 10000 15000 15000 15000 55000

Total Receipts 10000 15000 15000 15000 55000

Cash Payments

Salaries

Admin Manager 3750 3750 3750 3750 15000

Tutor 2400 2400 2400 2400 9600

Marketing 2500 2500 2500 2500 10000

Rents 900 900 900 900 3600

Equipment 10000 10000

Utilities 300 300 300 300 1200

Stationery 180 180 180 180 720

Insurance 100 100 100 100 400

Professional fees 2500 2500 2500 2500 10000

Other Expenses 5000 5000 10000

Total payments 22,630 12630 17630 17630 70520

Cash Book Balance -12630 -10260 -12890 -15520


Conclusion – The End

For more information about our courses visit:

http://www.businessservicessupport.com

Financial Planning- How to produce Cashflow Statements

Education

Transcript of Financial Planning- How to produce Cashflow Statements