Farm IT Help - Cash Flow Forecasts

Cash Flow Forecasts

A cash flow forecast can be a very useful tool when assessing business profitablity and how much money you will have and when.

Cash flows forecasts are not difficult to understand or produce, though knowing where to start can be a little difficult. A cash flow in simple terms is a list of income, cost of goods and expenses by account for a given period, normally twelve months. You may have already produced one and they are easily produced in spreadsheet software.

Below is a typical example

FarmIT 3000 provides cash flow forecasting that is a little more enhanced,

First of all you can created a new cash flow forecast which automatically lists all of your income, cost of good and expense accounts.

Secondly it displays not only for the forcast, but figures for the previous year and the actual figures for the year of the forecast as they are produced, allowing you to see instantly how close your forecast is to reality.

see also Creating a New Cash Flow Forcast.

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Account	Month 1	Month 2	Month3	Month4	Etc
Income
Beefs Sales	£500	£700	0	£650
Sheep Sales	0	0	0	£5500
Total Income	£500	£700	0	£7150
Cost Of Goods
Store Lambs	0	£2000	0	0
Total C of G	0	£2000	0
Expenses
Farm Wages	£500	£500	£500	£500
Beef Feed	£75	0	0	0
Vet And Med	0	£150	0	0
Total Expenses	£575	£650	£500	£500
Balance	-£75.00	-£2100	-£500	£6650
Cash Flow	-£75.00	-£2175.00	-£2675.00	£4025