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Business Plan Cash Flow

For each month list the items and total the figures under the headings Cash incoming and Cash outgoing.

Use the outline below as your starting point for your cash flow statement for each month: Whether you've already started or intending to start, you'll need to fill in actual or estimated figures against each item.

The number at the end of each month is referred to as the closing cash balance and this number becomes the opening cash balance for the next month. Once you've done your cash flow forecast, make sure you go back and check what you estimated against the actual cash flows for the period.

Do this to highlight any differences between estimated and actual, it will help you see why your cash flow didn't meet your expectations.

Download our Cash flow template to access an alternative version of this template.

This cycle or pattern can help you plan ahead and make sure you always have money to cover your payments.The five steps to preparing a cash flow forecast are: For existing businesses, look at last year's sales figures.Then decide what adjustments you will need to make based on past trends, i.e.There are two ways to improve how you manage your cash flow.The first is working capital management (managing stock, managing suppliers and debt recovery).If you do this you'll get an idea of how much cash needs to come in to cover the cash going out, and therefore what sales you'll need to make to cover this.Note that sales figures always change because they depend on various factors, such as the types of customers you sell to, how quickly they have to pay you, what the economy is doing (e.g.Expenses can be money spent on administration or operation.Again, expenses depend on the type of business you are starting or already run.interest rate increases or unemployment rates), and what your competitors are doing.Sources of cash ('cash inflows') vary from business to business.


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