Category: Business and Money > Finance
Asked by: baseball2-ga
List Price: $15.00
25 Apr 2005 12:02 PDT
Expires: 25 May 2005 12:02 PDT
Question ID: 514005
Could you provide me with a web-site or excel program that will assist me with preparing a montly cash payment summary!!! The easier to understand the better! Thank you!
Answered By: omnivorous-ga on 30 Apr 2005 09:57 PDT
Baseball2 ? When I?d originally seen your note, I thought about recommending cash management software packages ? but it would take you longer to set them up and learn them than is worth the effort. Instead, I?ve set up a spreadsheet to show the Cash Budget. It?s reasonably simple ? you?re not interested in net income here (as in a normal income statement) ? but rather in CASH IN and CASH OUT. This spreadsheet leaves some work for you to do ? though I?ve set up all of the fixed cost items. Open (and save on your computer) this spreadsheet: http://www.mooneyevents.com/cashflow.xls Once you?ve saved it on your computer, you?re set to work on it. Don?t be alarmed by the red numbers representing negative cash flow at the bottom ? once you enter sales data, a lot of them will go away. Here are the steps to completing the cash flow: 1. enter your monthly sales data on line 6 ? it?s all set to calculate everything. Note that there?s no assumption that there are accounts receivable (AR) that would normally delay payments. This must be a cash business. 2. Account Payable ? for your materials ? are split into two lines: the first for CURRENT MONTH and the second line for what gets paid in the next month. I could have labeled this NEXT MONTH but typically in accounting these would be items paid NET 30 ? so I?ve followed that convention on line 10 3. note that in January you?re paying 60% of the materials costs for items built in December. That was based on the January sales forecast ? which we have right here ? so there?s no need to ask what was sold in December. If you have any questions, don?t hesitate to ask for a clarification. Best regards, Omnivorous-GA
rated this answer:
Thank you! You did more than I ever expected!
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