I recently wrote a guest blog piece for Market Invoice. On Short Term Cash Flow Forecasting.
In it I explain what a short term cash flow forecast is and how you can use it to plan for your business.
Below is an excerpt. You can find the full post here.
Here is how to prepare a simple short term cash flow in five easy steps.
- Start off with a clean spreadsheet. I’ve prepared a template, which you can download here. There are two tabs one to put in income and expenditure and another to show the implied future bank balance.
- Look over your bank statements for the last two months. You should already know which outgoings and customer receipts occur every month but this will ensure you don’t miss anything. Insert all amounts into the spreadsheet. This should include items such as payroll, PAYE, loan repayments, standing orders and direct debits.