Budgeted Cash Flow Structure
The budgeted cash flow forecast gives a monthly line by line analysis of all revenues and expenditure. There is a link at the end of this article showing a working example of our budgeted cash flow forecast.
Receipts - All Sources
Cash Out - Purchases
Cash Out - Operating Overheads
Cash Out - Non Operating Costs (eg. Fixed Assets; VAT; Loan Repayments)
Cash Out - Interest and Tax
The Bank Account Forecast
The forecast for monthly bank balances follows is calculated as:
Bank Balance Bought Forward
add: Total Receipts
less: Total Cash Out
Bank Balance Carried Forward
Forecast Cash Flow and Free Financial Resources
Finally the value of undrawn cash from from bank loans and overdrafts and factoring / invoice discounting (if selected) facilities are added to the bank balances to calculate total monthly net cash resources still available to the business as follows:
Bank: Balance @ Month-End
add: Undrawn Cash Available for Bank Overdraft and Loan limits
add: Undrawn Cash Available from Factoring / Invoice Discounting (if selected)
Net Available Cash Resources Carried Forward
Deficit months for net cash flow resources will call for either a reappraisal of overheads or investment or a temporary cash injection in order to maintain cash flow.
This is done by clicking the edit button and selecting the category you wish to change.