Category: Cash Flow Management

Articles on cash flow and working capital for business

How cash flow software with bank overdraft works (With automatic overdraft interest)


Cash flow forecasting software with bank overdraft functionality makes it easy to prepare forecasts for your bank manager. If your business needs to prepare cash flow projections to forecast the level of overdraft required as part of your working capital requirement, then it’s important to find easy to use software to save you time and effort. Especially if you’re not used to preparing complicated spreadsheets with Excel or similar.

Cash flow software with interest expense included


Cash flow software with interest expense functionality included will include on the cash flow forecast report itself and on the forecast profit and loss report. Additionally, the loans, hire purchase or overdrafts the interest expense relate will be included on the projected balance sheet. Interest expense will be generated from within the cash flow software from two sources. These include an automatic overdraft calculation from the cash flow if an overdraft is required. Plus from forecast interest on loans and hire purchase contracts over the projection period.

How to work out debit and credit in cash flow forecast


Debit and credit in a cash flow forecast is important where you’re including both a forecast profit and loss and a projected balance sheet as well. Whereas if you’re only putting together a cash flow forecast on its own, then debit and credit isn’t a concern. Having said that, it is always recommended to prepare a cash flow forecast that’s accompanies by a projected balance sheet, as you’ll then have the added comfort that your figures balance and make sense.

Cash flow software with stocks and inventory


Cash flow software with stock or inventory functionality will include stock on the projected balance sheet, the cash flow forecast itself, and the forecast income statement or projected profit and loss. Which means that the closing stock or inventory will be on the projected balance sheet report at the end of each month or period. The cost of purchasing the raw materials or products will be shown as an outgoing on the cash flow forecast. Plus the forecast profit and loss will include the net cost of sale.