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CASHFLOW FORECAST

  • 12-10-2009 4:10pm
    #1
    rexel1
    Closed Accounts Posts: 45 ✭


    Hi,

    I am in the process of compiling my Business Plan for a new business. Can somebody explain what is the difference between a Cashflow Forecast and a Projected Profit and Loss Account


Comments

  • #2
    kenbrady
    Closed Accounts Posts: 404 ✭✭kenbrady


    rexel1 wrote: »
    Hi,

    I am in the process of compiling my Business Plan for a new business. Can somebody explain what is the difference between a Cashflow Forecast and a Projected Profit and Loss Account
    cash flow in the actual money flowing in and out of the business, you can never have negative cash flow.
    Profit and loss is an account to say if you are making or loosing money.

    Example: Design a website
    cash flow in what you charge customer + vat = € 121.5
    cash flow out vat to revenue = € 21.5
    profit & loss = € 100


  • #3
    rexel1
    Closed Accounts Posts: 45 ✭rexel1


    Cheers,

    Do you know where I could source a good basic template for these?


  • #4
    lecheile
    Registered Users, Registered Users 2 Posts: 703 ✭✭✭lecheile


    Here is a very simple one from MSOffice template. There are plenty of them available and if you search for your particular industry you will find one that is more customised and relevant.

    http://office.microsoft.com/en-us/templates/TC011132361033.aspx?AxInstalled=1&c=0


  • #5
    rexel1
    Closed Accounts Posts: 45 ✭rexel1


    Cheers for that


  • #6
    BnA
    Closed Accounts Posts: 616 ✭✭✭BnA


    A very simple Profit and Loss account will show you what happened in your business for the period. i.e. Invoices you sent out to your customers and invoices you received from your suppliers.

    Cash flow will show the actual cash transactions that took place in the period. i.e. Cash you received in and Money you payed out.

    For example. If you sell €100 worth of goods in January, then that sale goes into your Profit and Loss Account for January. However, if the Customer doesn't actually pay the invoice intill March, then that is when it goes into Cash Flow.

    Cash flow is key to forecasting for any business. You might make out a super plan for a business that will show it making a profit over the year.
    However, if you do not put together a good cash flow, the business could fold before you have a chance to realise those profits.


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  • #7
    Spinnaker
    Registered Users, Registered Users 2 Posts: 482 ✭✭Spinnaker


    I can save you the search for templates. I have collected some good ones from the hundreds available and would be happy to pass them on. PM me if that helps..


  • #8
    rexel1
    Closed Accounts Posts: 45 ✭rexel1


    Spinnaker,

    Cheers for the templates. They are a great help to get me going.


  • #9
    Scruddler
    Closed Accounts Posts: 2 ✭Scruddler


    Got the Cash Flow template you sent on and worked out great.
    Cheers
    S


  • #10
    conman
    Closed Accounts Posts: 183 ✭✭conman


    Scruddler wrote: »
    Got the Cash Flow template you sent on and worked out great.
    Cheers
    S

    me too...

    looks perfect..
    thanks spin


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