How to create a cash flow
Overview
BudgetLink allows you to convert your accruals budget into a cash budget which can then be used to forecast cash flow.
In order to forecast cash flow, you will need to:
- Create an accruals budget;
- Create a cash budget from your accruals budget;
- Create a cash flow ageing version to store the ageing percentages for each account;
- Enter cash flow ageing;
- Report on your cash flow forecast.
Creating an accruals budget
The accruals budget you create represents the starting numbers from which the cash budget will be created. To create a budget, see Entering Budgets for more information.
Creating a cash flow ageing version
In order to create a cash flow, a cash flow ageing version must be created to store the ageing percentages for each account.
Note that BudgetLink ships with a default cash flow ageing version that is already setup in order to convert your accrual budget to a cash budget.
To create a cash flow ageing version see, How to create a cash flow ageing version.
Creating a cash flow version from your accruals budget
The cash flow version you create represents the link between your accruals budget and your cash flow ageing.
Note that BudgetLink ships with a default cash flow version that is already setup in order to convert your accrual budget to a cash budget.
To create a cash flow version, see How to create a cash flow version.
Entering cash flow ageing
The cash flow ageing values you enter represents the ageing or timing breakdown between your accruals budget and your cash budget. In other words, once the accrual numbers occur, how long does it take to go into your bank account. To enter cash flow ageing, see How to enter cash flow ageing percentages.
Report on your cash flow forecast
Finally, once everything is setup and entered, you can create your cash flow forecast at the click of a button. For more information, see How to report on your cash flow forecast.