How Do You Plan A Cash Flow Table For A Business?
A cash flow table provides a picture of the money going in and out of a business during a given period of time. It is an invaluable tool for business planning because it gives you the information you need to forecast for expansion projects and assess how much additional capital you will need to fund them. It is important to be as honest as possible when compiling a cash flow table. Attractive numbers may make your business look good on paper and even help you obtain access to capital, but if your numbers are not supported by facts, you will have difficulty paying your bills. Step 1 Use a 12-column accounting pad or spreadsheet template to create a cash flow table for one year. Label the columns across the top of the spreadsheet with the months of the year. Step 2 Use the top half of your spreadsheet to list your available funds. Label the top row, “Cash on Hand.” Label the following rows according to the different categories of income that your business receives, such as wholesale sale
