Cash inflow/outflow

 

An accurate description of the future of the businesses financial situations and health. A typical business cash-flow forecast details the amount of money predicted to flow in to the business. Reviewing the bank balance at the end of each month will allow the business to immediately attend to any financial issues if they arrive rather than the end of the year.

Inflow is the amount of money coming in to the practice the largest of which is fees from clients, with a standard of 30 days to be collected from clients. However 17.5% of this will be deducted due to VAT Tax reasons.

 

Outflows are any expenditures coming out mentioned in section 6 all outflows must be recorded with evidence such as receipts, bank statements and cheque transfers.

Cash-flow forecasts need to take in to account expenditures such as transport, computers and furniture. It represents the flow of body through the business and is vital and needs to be kept moving and constantly refreshed.

 

Cash-flow annually

 

The below table indicates a breakdown annually of the predicted cash-flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is the table of VAT payment that corresonds to the above table of cashflow.

 

 

 

 

 

Cash-flow Quarterly

The below table indicates a breakdown quarterly of the predicted cash-flow