This Cash Forecast provide a rudimentary yet informative estimate of your cash needs.
There are some assumptions; stock levels remain constant, and the timing of receipts and payments are consistent from year to year.
It is not meant to provide a comprehensive detailed analysis of your cash needs but rather to highlight your overall cash position from year to year.
It is deliberately simple to, enable quick formulation, to provide an overall perspective for your decision making.
Net Flow reflects the expected positive or negative cash position after taking into account Business Loan Repayments and taxes.
Your goal is to ensure that after you consider loan repayments and applicable taxes that the business provides sufficient cashflow to sustain operations. Alternatively, you can adjust input variables to gauge the effect on your cashflow.
Your cash position is determined after taking into account the “Owners Wages”.
Goal - Ideally you are seeking a business acquisition that provides a positive cashflow from year one.
You also have "Target" which allows you to target; Sales, Gross Margin, Total Expenses, or Purchase price, based on an expected Net Cashflow in Year one. More details in help for Target.