![]() 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. Review your estimated cash flows against the actual This will be the opening cash balance for the next period. The number at the end of each period is referred to as the closing cash balance. Next, add in all the cash inflows and deduct the cash outflows for each period. Since cash flows are all about timing and the flow of cash, you'll need to start with an opening bank balance – this is your actual cash on hand. Compile the estimates into your cash flow forecast 'one-off' bank fees such as loan establishment feesĤ.Other cash outflowsīeyond its normal running expenses, cash leaves a business ('cash outflows') in other ways. These will also depend on the type of business. This way, if you need to adjust your sales numbers later (for example, if you actually sold 10 units in March when you thought you would sell 5), it will be easier to adjust actual cost of goods sold.Įxpenses can be money spent on administration or operation. ![]() When you calculate your cash outflows, work out what it costs to make goods available.
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