This is a Working Example of our Forecasts
Registered users can produce their own business forecasts in minutes; exactly as is shown here.

Report name: Sample Forecast

Forecast Cash Flow and Bank Balance Budget

The monthly cashflow forecast for income, expenditure, the bank, loans, plus undrawn cash from overdraft and (if selected) factoring /supply chain finance

Year 5May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22
Revenue
Capital000000000000
Loans000000000000

Asset Finance Debt

3,5583,5583,5583,5583,5583,5583,5583,5583,5583,5583,5583,558
Sales Ledger Cash48,45584,90476,52687,45879,259120,255194,048233,677136,65386,09276,526106,590
DR/CR Cards24,16017,25724,16017,25731,06251,77165,57627,61120,70817,25731,06217,257
Cash Sales2,4531,7522,4531,7523,1545,2566,6572,8032,1021,7523,1541,752
Assets Sold000000000000
VAT refunds000000000000
Total78,625107,471106,697110,025117,033180,840269,840267,650163,022108,659114,300129,157
             
Cash Out: Purchases
Purchases43,44073,15060,82174,33763,074103,621166,695197,106100,24268,70661,94892,358
L/C Issued000000000000
Total43,44073,15060,82174,33763,074103,621166,695197,106100,24268,70661,94892,358
             
Cash Out: Operating Overheads
Wages25,00025,00025,00025,00025,00025,00025,00025,00025,00025,00025,00025,000
Overheads11,87516,81516,69917,27516,98719,72323,61124,47518,93116,98716,91518,283
Bank Charges676767676767676767676767
Factoring Charges000000000000
Total36,94141,88141,76542,34142,05344,78948,67749,54143,99742,05341,98143,349
             
Cash Out: non Operating
Fixed Assets5,0835,0835,0835,0835,0835,0835,0835,0835,0835,0835,0835,083

Asset Finance Payments

01482974455937418901,0381,1861,3341,4831,631

Asset Finance Settlements

000000000000
Loans Repaid000000000000
VAT on Imports2,1181,5132,1181,5132,7244,5405,7502,4211,8161,5132,7241,513
Vat Remitted4,000005,7310012,4320015,11200
Total11,2026,7457,49812,7738,40010,36424,1558,5428,08523,0439,2908,227
             

Cash Out- Tax, Interest and Dividend

Interest Charged

229380441637643494275208237438462619

Tax

000000006,000000

Dividend

000000000000

Interest, Tax & Dividend

2293804416376434942752086,237438462619
             
Forecast Bank Account

Bank Bfwd

-14,500-27,686-42,371-46,201-66,263-63,400-41,829-11,7934604,920-20,661-20,042

All Revenues

78,625107,471106,697110,025117,033180,840269,840267,650163,022108,659114,300129,157

All Outgoings

91,812122,156110,526130,088114,170159,269239,803255,397158,562134,240113,681144,554
Bank Cfwd-27,686-42,371-46,201-66,263-63,400-41,829-11,7934604,920-20,661-20,042-35,439
             
Forecast net cash and finance
Cash @ bank-27,686-42,371-46,201-66,263-63,400-41,829-11,7934604,920-20,661-20,042-35,439

Overdraft Limit

50,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,000

Undrawn Factoring - Supply Chain Finance

000000000000

Bank plus Undrawn Financing

22,3147,6293,799-16,263-13,4008,17138,20750,46054,92029,33929,95814,561
Year 5May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22
Revenue
Capital000000000000
Loans000000000000

Asset Finance Debt

1,0501,0501,0501,0501,0501,0501,0501,0501,0501,0501,0501,050
Sales Ledger Cash82,77993,53282,82594,65785,783130,153210,019252,911147,90193,17882,825115,363
DR/CR Cards26,48818,92026,48818,92034,05656,75971,89530,27222,70418,92034,05618,920
Cash Sales4,0342,8814,0342,8815,1868,64410,9494,6103,4572,8815,1862,881
Assets Sold000000000000
VAT refunds000000000000
Total114,351116,383114,396117,508126,074196,606293,913288,842175,112116,029123,116138,214
             
Cash Out: Purchases
Purchases62,99373,63060,19573,57262,425102,555164,979195,07799,21167,99861,31091,407
L/C Issued000000000000
Total62,99373,63060,19573,57262,425102,555164,979195,07799,21167,99861,31091,407
             
Cash Out: Operating Overheads
Wages25,83325,83325,83325,83325,83325,83325,83325,83325,83325,83325,83325,833
Overheads16,91020,46620,26920,90220,58523,59527,87228,82222,72420,58520,50622,011
Bank Charges100100100100100100100100100100100100
Factoring Charges000000000000
Total42,84346,39946,20246,83546,51949,52853,80554,75548,65746,51946,43947,944
             
Cash Out: non Operating
Fixed Assets1,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,5001,500

Asset Finance Payments

1,7791,8231,8671,9101,9541,9982,0422,0852,1292,1732,2172,260

Asset Finance Settlements

000000000000
Loans Repaid000000000000
VAT on Imports4,6103,2934,6103,2935,9279,87912,5145,2693,9523,2935,9273,293
Vat Remitted5,731007,8990016,3980019,79800
Total13,6216,6167,97714,6029,38213,37732,4538,8547,58126,7649,6447,053
             

Cash Out- Tax, Interest and Dividend

Interest Charged

697797812974926683408417426435443452

Tax

0000000013,613000

Dividend

000000000000

Interest, Tax & Dividend

69779781297492668340841714,038435443452
             
Forecast Bank Account

Bank Bfwd

-35,439-41,242-52,301-53,092-71,567-64,744-34,2817,98637,72543,35017,66422,943

All Revenues

114,351116,383114,396117,508126,074196,606293,913288,842175,112116,029123,116138,214

All Outgoings

120,154127,442115,186135,983119,251166,143251,646259,104169,487141,715117,837146,857
Bank Cfwd-41,242-52,301-53,092-71,567-64,744-34,2817,98637,72543,35017,66422,94314,300
             
Forecast net cash and finance
Cash @ bank-41,242-52,301-53,092-71,567-64,744-34,2817,98637,72543,35017,66422,94314,300

Overdraft Limit

50,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,000

Undrawn Factoring - Supply Chain Finance

000000000000

Bank plus Undrawn Financing

8,758-2,301-3,092-21,567-14,74415,71957,98687,72593,35067,66472,94364,300
Year 5May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22
Revenue
Capital000000000000
Loans000000000000

Asset Finance Debt

3,1503,1503,1503,1503,1503,1503,1503,1503,1503,1503,1503,150
Sales Ledger Cash94,671140,403130,266148,875134,918204,703330,316397,775232,617146,549130,266181,441
DR/CR Cards8,8136,2958,8136,29511,33118,88423,92010,0727,5546,29511,3316,295
Cash Sales7,1575,1127,1575,1129,20215,33719,4278,1806,1355,1129,2025,112
Assets Sold500500500500500500500500500500500500
VAT refunds000000000000
Total114,291155,461149,886163,932159,101242,575377,314419,677249,956161,606154,449196,499
             
Cash Out: Purchases
Purchases64,57192,27576,75293,80879,595130,762210,357248,733126,49886,70178,173116,549
L/C Issued000000000000
Total64,57192,27576,75293,80879,595130,762210,357248,733126,49886,70178,173116,549
             
Cash Out: Operating Overheads
Wages27,50027,50027,50027,50027,50027,50027,50027,50027,50027,50027,50027,500
Overheads21,39725,16024,74725,59225,16929,18234,88536,15228,02125,16925,06427,070
Bank Charges125125125125125125125125125125125125
Factoring Charges000000000000
Total49,02252,78552,37253,21752,79456,80762,51063,77755,64652,79452,68954,695
             
Cash Out: non Operating
Fixed Assets4,5004,5004,5004,5004,5004,5004,5004,5004,5004,5004,5004,500

Asset Finance Payments

2,2902,2602,2342,2092,1882,1682,1461,4331,5511,6691,7861,904

Asset Finance Settlements

350350350350350350350350350350350350
Loans Repaid000000000000
VAT on Imports9,7656,9759,7656,97512,55520,92526,50411,1608,3706,97512,5556,975
Vat Remitted7,8990010,6060021,4520025,79000
Total24,80314,08516,84824,64119,59227,94354,95317,44314,77139,28419,19113,729
             

Cash Out- Tax, Interest and Dividend

Interest Charged

552585549620556434429287310334357381

Tax

0000000018,495000

Dividend

000000000000

Interest, Tax & Dividend

55258554962055643442928718,805334357381
             
Forecast Bank Account

Bank Bfwd

14,300-10,357-14,626-11,262-19,615-13,05113,57862,643152,081186,317168,810172,848

All Revenues

114,291155,461149,886163,932159,101242,575377,314419,677249,956161,606154,449196,499

All Outgoings

138,947159,730146,521172,285152,537215,946328,249330,239215,720179,113150,410185,354
Bank Cfwd-10,357-14,626-11,262-19,615-13,05113,57862,643152,081186,317168,810172,848183,993
             
Forecast net cash and finance
Cash @ bank-10,357-14,626-11,262-19,615-13,05113,57862,643152,081186,317168,810172,848183,993

Overdraft Limit

50,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,00050,000

Undrawn Factoring - Supply Chain Finance

000000000000

Bank plus Undrawn Financing

39,64335,37438,73830,38536,94963,578112,643202,081236,317218,810222,848233,993

Cash Flow Forecasting and Deficits

Companies do not fail simply because of losses, they fail because they have run out of cash. Indeed, most companies that go into administration will have had a positive value for the profit and loss account.

Your business must pay its bills on time, which is why this cash flow forecast matters. If any month is returning a deficit for the bank plus undrawn financing, you will need to review your proposed figures for expenditure or borrowings in order to eliminate that.

Using the What-If Calculator for this is strongly recommended.

Revise Wages, Fixed Overheads and Year-End Stock

One approach (among many) to improve overall cash flow is to adjust your forecast for wages, fixed overheads  and cash you propose to tie up in year-end stock. Here, using the What-If Calculator, these are reduced by degrees of 5%.

Stock Reduction % Wages: Fixed Overheads %  Year End Stock Wages Fixed Overheads Min. Bank & Financing Increase Decrease Borrowings Year End Bank
0% 0% 125,000 300,000 130,000 -16,236 53,854 -35,439
10% 5% 112,500 285,000 123,500 -6,950 19278 -864
20% 10% 100,000 270,000 117,000 2,364 -14,585 32,999
 

Revise Fixed Assets and Year-End Stock

Reducing investment in both fixed assetsand year-end stock will also make a big difference to cash flow. Here, new main pool fixed assets (plant & machinery, fixtures equipment and commercial vehicles) are set at 30,000 for year 1 and at 25,000 for new company cars; a total of 55,000. These are assumed to be 70& asset financed over 24 months.

Stock / inventory is again reduced by 10% while taking out first new cars, then new main pool assets illustrates an alternative route towards achieving significant benefits to turning borrowings into surpluses and overdrafts into cash in the bank. 

New Fixed Assets  Stock Reduction % Year End Stock Min. Bank & Financing Increase Decrease Borrowings Year End   Bank
55,000 0% 125,000 -16,236 53,854 -35,439
30,000 10% 112,500 -10,857 15,007 -10,082
0 20% 100,000 -5,644 -30,162 15,662

Short Term Loans and Cash Flows

A forecast returning cashflow deficits can always be resolved by increased forecast loans or bank overdraft.

That should only be the case though after all possible changes to the business plan have been made for planned expenditure on overheads and investment. While increasing borrowings will eliminate deficits they do not solve the problems or mistakes that create the need for them.

Factoring / Supply Chain Financing and Cash Flow

For a company selling the bulk of its products on open credit, factoring / invoice discounting can be an ideal solution, especially in the case of a seasonal business.

There are costs, for example there may be a small service charge on factored invoicing and of course interest, wgich should be around the same as a bank overdraft. The cash flow that results can transform a growing company's prospects as our Interactive Factoring and Cash Chart makes clear.

Dealing with the right providers is important though and the thing to look out for is whether or not a factor / invoice discounter is a member of the Asset Backed Finance Association; now incorporated into the UK Finance Association.

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