Ma-Pa Cash Forecast
Many of the small businesses that I have been around don't make use of a simple tool the Cash Forecast that can provide them with some restful instead of sleepless nights worrying about bills. I really don't know why, because a Cash Forecast is not that difficult to prepare once you know how.
What Is Cash Forecasting ?
Cash forecasting is the process of estimating a business's future cash inflows and outflows based on current business conditions and past performance to predict its cash position over a specific period. It is important because it allows companies to ensure sufficient liquidity to meet obligations, manage finances proactively, and make informed decisions about spending, saving, and investing for growth..
Why Important ?
Ensures liquidity by anticipating shortages, businesses can secure financing or adjust spending, ensuring they have enough cash on hand to pay bills and meet obligations on time.
Forecasts enable proactive financial management, helping businesses plan for growth opportunities and major capital expenditures.
Helps identify idle cash that could be invested for returns, maximizing the use of available funds.
Cash forecasting helps identify potential financial risks and allows for proactive management, reducing stress and improving financial stability.
It provides the confidence needed to pay suppliers and employees on time, which is crucial for maintaining strong relationships.
Forecasts enable proactive financial management, helping businesses plan for growth opportunities and major capital expenditures.
Helps identify idle cash that could be invested for returns, maximizing the use of available funds.
Cash forecasting helps identify potential financial risks and allows for proactive management, reducing stress and improving financial stability.
It provides the confidence needed to pay suppliers and employees on time, which is crucial for maintaining strong relationships.
What will I Learn ?
The Ma & Pay Cash Forecast Simulation teaches you the steps needed for preparing a cash forecast.
Step 1: Enter Historical Financial Information, Collection and Payment Patterns, and Beginning Balances.
Step 2: Enter your Estimated Monthly Sales.
Step 3: Enter your Estimated Monthly Payments.
Now, that doesn't sound too difficult - does it ?
What's Needed ?
If you don't have Excel you need to Download a free version of Libre Office.
Libre Office
What's Included ?
I've provided two Versions of the Worksheets.
1. What I call the "Cartoon" Version -adds a little humor
2. What I call the Professional Version
The Simulation includes Instructions, Data Needed For the Exercise, Blank Worksheets, and the Filled In Worksheets with the Answers.
Main Folders Included:
- Instructions
- Data Input
- Cash
- Other Payments
- Basic Info-1
- Basic Info-2
- Sales
- Expenses
- CartoonWorkbooks
- ProfessionalWorkbooks
Let's see what Ma and Paw's Simulation Looks Like !