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Cash Flow Projections and Cash Flow Management

Simple Alliance, Kenya Limited


Definition                                                                            

The cash flow sensitivity analysis worksheet is a forecasting document that enables you to undertake cash flow projections. It gives you an idea of what your cash needs will be based on various projected expense and income situations. Using the analysis worksheet, you make projections about the expense and income developments of your business. You then go ahead to predict the effects such disbursement and income fluctuations will have on the cash needs of your business. These actions constitute cash flow management.

File Description

Using Excel software, we have provided an MS template cash flow projection spreadsheet for your convenience. Once you download it, the version 5.0 and above file will help you analyse your business’ cash flow sensitivity.    

Specific Parameters

The attached cash flow sensitivity analysis worksheet template is based on a five percent margin of error. This means that the tool will let you know how your business’ cash flow situation will be when your projected receipt figure drops by five percent.

Special Features

The attached cash flow sensitivity analysis worksheet template offers you a number of useful features. Key benefits include:

  • Increased flexibility
  • Option to modify
  • Ease of use
  • Prediction ability
  • Single download requirement

Complete Cash Inflow and Outflow Description

It provides you with a comprehensive list of every description of your business’ cash outflow and inflow developments.

Added Flexibility / Provision for Customising  

In case you need to introduce extra categories of expenditures, you are free to do so. All you need to do is delete or add any necessary categories and then key in your figures.   

One Download Action

We have formatted the attached cash flow sensitivity analysis worksheet template in such a way that after you download it, you will not need another download. You will then use the tool as many times as you need.   

Added Ease of Use

You will find the cash flow sensitivity analysis worksheet template easy to use. After downloading and saving it, you just need to key in your cash outflow and inflow figures.  

Projection Ability

The attached template will give you an idea of what happens when your cash outcomes are five percent more than your projections. In addition, the spreadsheet will let you know what will happen to your cash if your projected sales are fewer than what you projected by five percent.

Attachments
Cash Flow Sensitivity Analysis Worksheet

Cash flow sensitivity analysis tells you how your business’ future cash outflow and inflow changes will impact on your business’ cash needs. These analyses are sometimes referred to as cash flow forecasts or cash flow projections. Basically, it informs you of anticipated cash income and expenditure modifications and the effects such changes will have on your business’ cash requirements. For accurate and proper cash flow management, this analysis is a pertinent undertaking especially for a small, start-up business. The forecast is usually based on a certain percentage; for instance, it could determine how a five percent drop in projected cash flow will affect cash requirements for the business. Alternatively, your cash flow sensitivity analysis could be based on a future cash flow rise. You need to use an MS excel spreadsheet to carry out this analysis. Using excel software, we have developed a template cash flow projection spreadsheet. The model is in the attached file. After keying in the cash outflow and inflow figures, the automated spreadsheet calculates and shows your cash flow sensitivity values. 

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