Predict the amount and timing of cash deficienies or surpluses via cash flow projections...

Cash Flow

Cash Flow

• A cash flow is a month by month projection of the anticipated cash inflows and cash outflows.
• A cash flow projection will enable you to predict the amount and timing of cash deficiencies or surpluses.

Cash Receipts

• Cash receipts include cash coming "in" to the business due to the sales of products and services.
• Other cash receipts may include investment interest earned, loan and investment money coming in, and money expected to come in from sales on credit.

Cash Disbursements

• Cash disbursements include cash going "out" of the business due to the costs of operating a business.
• Other cash disbursements may include bill payments, taxes owing, and re-payments on loans to the bank or investors.