A Simple Guide to Projecting Your Business Cash Flow

Cash flow is king for any business, but planning cash flow is not the easiest undertaking.   If you’re going to succeed in business, mastering basic cash flow projections is a must.

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Cash Flow is About Timing. It’s important to understand that the timing of cash income and cash outgo comes down to the operating cycle of your business. This cycle includes many moving parts, such as buying and selling, your collection process, and the overhead costs of running your business.

Using a basic spreadsheet as your tool, cash flow projection gives you a clear look at when money comes in, when it goes out and what money you are left with at the end of each month after you have paid your expenses and recorded your income.

What Does a Cash Flow Projection Spreadsheet Look Like?

SCORE.org and other websites offer a wide selection of free business templates for download, including a sample cash flow projection spreadsheet template (with formulas built in for those of us who are spreadsheet illiterate). Look for the resource labeled Financial Projections Template at score.org.

This resource will allow you to develop a projected income statement, balance sheet, and a cash flow forecast.  It is designed for a wide variety of users, from those who have little to no accounting experience to those who may be well versed in finance.  Wherever you are on that scale, being able to project income and forecast cash flow will be a valuable tool for your business.

Once you use the available projections resources and realize that low cash flow is a problem, it will be worth talking to Universal Funding to see how invoice factoring can cure your cash flow shortages.  We provide a short-term and fast solution to cash flow concerns.  Contact Universal Funding at  1-800-405-6035 or fill out a rate form and one of our associates will give you a quick call to learn more about your business and to find you a solution.

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