Cash Flow Projector

Cash Flow Projector

 

The cash flow forecast feature that was available in earlier versions has been enhanced to provide more useful information when planning future cash flow with version 2004. This new option is available for QuickBooks Pro 2004 and higher.

 

Beginning Balances

 

For the beginning cash balance, it is possible to include all or just some of the bank type accounts plus undeposited funds. In addition to choosing the accounts based on the check boxes, it also possible to enter an amount to adjust the balance. This type of flexibility is available throughout the feature to provide ultimate control over the projection calculations.

 

QBRA-2004: Company > Planning & Budgeting > Cash Flow Projector

 



Cash Receipts

 

Next, the determination is made on what cash receipts should be expected in the next 6 weeks. There are several different ways the software can help to calculate that estimate including average amounts for the last 6 weeks, same period last year, and many more, or it is possible to choose to project cash receipts manually.

 

For the manual calculation, this can be based on any criterion that makes sense for the particular business. Some common examples include money that is anticipated from new sales (i.e. not yet invoiced), the Accounts Receivable Aging or Collection reports, other cash inflows such as loan proceeds, etc. The data entry is based on a date and amount in the itemized table format. As was mentioned before, no matter which method is chosen, it is possible to adjust the weekly amounts.

 

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next

 



Business Expenses

 

The next step in the process is to enter any cash disbursements that have not been entered into Accounts Payable. This would include expenditures such as payroll, payroll taxes, sales tax, estimated cash payments, owner's draws, etc.

 

The expenditures can be designed by frequency to effect the cash flow projection as appropriate. For example, payments can be entered with the date they will be due like annual or semi annual property taxes, quarterly income tax estimated payments, monthly rent payments, or one time expenditures like year end bonus checks, weekly payroll estimates, etc.

 

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next

 



Accounts Payable

The Accounts Payable estimate for money that will be spent is based on the due dates of the individual bill. It is possible to adjust the payment date based on a best guess of when the funds will need to be available or when the bill will actually be paid. As with the other sections, it is also possible to enter an adjustment as needed for the weekly expenditures.

 

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next > Next

 



Finish Projection

 

Once the cash inflows and outflows have been entered, reviewed, and accepted, by clicking on the finish projection button, a cash flow projection sheet will appear. It is possible to print this report or save as a PDF.

 

It is also possible to close the report, which will return to the input screens to make "what if" scenarios more efficient as different receipts and disbursement alternatives are entered.

 

Throughout the process, it is also possible to "preview projection" without going through all the screens.

 

QBRA-2004: Company > Budgeting & Planning > Cash Flow Projector > Next > Next > Next > Next > Finish Projection

 

 

More information on this topic

Overview of Version 2004

Planning and Budgeting