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Cash Flow Forecast and Budgeting

Simple Alliance, Kenya Limited


You would use the cash flow budget worksheet to make projections of your business’ cash outflows and inflows for a 6-month time duration. Basically, this is cash flow forecast. This prediction helps you achieve some important cash flow management goals. The major functions of a cash flow budget worksheet include:

  • Making predictions about anticipated cash flow deficits for your business 
  • Helping your lender to determine whether you will have the capacity to repay any loans advanced to you
  • Making projections about the capacity of your business to produce cash that you would need for future expansion initiatives    

Cash Flow Deficits

Cash flow is the ‘spine’ of your business. Without cash flow integrity, you are likely to face devastating operational challenges. To avoid problems in your business’ budget, you need to make accurate predictions about your future cash flow condition. The cash flow budget worksheet helps you to generate a schedule that shows expected future cash flow deficiencies. With accurate cash flow forecast information, you can plan accordingly.

Expansion Cash Availability

Situations in the market may prompt you to contemplate expanding your business. Obviously, this drive requires you to inject additional cash in form of capital. Using the cash flow budget worksheet, you can examine your business’ performance so as to make conclusions about your capacity to generate cash for future expansion drives. This knowledge is crucial as it helps you to modify your plans or seek alternative financing options.

Your Loan Suitability       

Any monies you acquire in form of loans needs to be repaid as per agreed terms. Your ability to repay loans is a critical determinant of your actual repayment. For this reason, your lender would like to objectively assess your capacity to repay any loan monies they advance to you. The cash flow budget worksheet is a useful source for such information. Using this document, your lender will appraise your repayment capacity.

A Welcome Aid   

To make your budgeting work more efficient, we provide you with a cash flow budget worksheet template in the form of an MS Excel (version 4.0 and above) file. The attached template will assist you to prepare a cash flow budget. It has been formatted and set up so as to facilitate your preparation of the cash flow budget worksheet for 6 months. The template has a number of special features which you may find useful.

Special Features

The cash budget worksheet template offers you the following advantages:  

  • Pre-prepared cash outflow and inflow categories 
  • Provision for modification
  • Automatic duplication
  • Single download requirement 

Already Prepared Cash Outflow and Inflow Categories 

The cash flow budget worksheet template contains majority of the key cash outflow and inflow categories. All you need to do is key in the numbers in the relevant categories. You then print out the ensuing worksheet.       

Provision for Modification

Depending on your situation and needs, you can easily alter the cash flow budget worksheet template. 

Single Download Requirement 

You only need to download and save the cash flow budget worksheet template once. You are then free to use the template over and over as per your budgeting needs.  

Automatic Duplication

After opening the template, the system automatically creates a copy for you to use. The original template is retained.



Cash Flow Budget Worksheet Template

The cash flow budget worksheet enables you to make predictions about cash outflows and cash inflows. Usually, the document covers half-year time durations giving you a precise cash flow forecast for your business. The significance of a cash flow budget worksheet cannot be overemphasised. It enables you to execute suitable cash flow management initiatives. Prepared correctly, the cash flow budget will enable potential lenders to evaluate the financial status and worth of your small business. This accurate portrayal of facts expedites the process of determining whether or not you are worthy of accessing credit facilities. In addition, you could use this document to map out cash outflow and inflow circumstances at any time as well as forecast cash flow deficiencies. You can also use the cash flow budget worksheet to determine the capacity of your business to generate adequate money for expansion purposes or for your everyday needs. The tool is crucial for generating your business’ budget. The above excel attachment contains a model cash flow budget worksheet that would speed up and make your cash flow budgeting work easier

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