Operating budget and cash flow model

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Information about Operating budget and cash flow model
Templates & Forms

Published on March 3, 2014

Author: oconnellsobm

Source: slideshare.net

Description

Poor cash flow can put increased pressure on your business. Our Operating Budget and Cash Flow Model provides a simple analysis to help you identify cash shortages before it's too late.

Budgeting and Cash Flow Model O'Connells OBM The Budget sheet helps to project income and expenses based on a growth/inflation factor. This will help to plan ahead manage income and expenses and the effect on profit. The Budget Cash Flow then assists to manage cash flow. Poor cash flow can put pressure on a business particularly if funding is required at short notice. The Budgeted Cash Flow is based on the Budget taking into account the timing on income and payments. E.g. if income is received 90 days after it is earned and expenses are paid for when they are incurred there will be a funding gap for the 90 days until the first income is received. The Budgeted Cash Flow helps to project what the cash balance will be to identify cash shortages before it is too late to do something about it. The first step is to enter the last year's financial statements broken down by month, on the Last Year tab (note this should be the GST exclusive amounts) Budget This spreadsheet is based on the idea the income and expenses will be the same as last year plus a factor for growth/inflation The first step is to enter the last year's financial statements broken down by month, on the Last Year tab (note this should be the GST exclusive amounts). Next select what the nature for each item of income and expense. Note that if no nature is select it will default to the last year amount. The three options are: / Turnover being the expected percentage of turnover growth e.g. if turnover increase by 10% you would also expect this expense to increase by 10% / Mid/range being the item is expected to increase somewhere between turnover and inflation / Inflation being this expense is expected to increase by inflation Budgeted Cash Flow For each of the income and expense items complete the term column, being when the expected payment/receipt is to be made. The options being cash, 30 days, 60 days or 90 days. Then complete the non/operating cash inflows, cash outflows and the opening bank balance This downloadable tool/calculator/information does not give business, accounting, taxation, investment or financial planning advice. It is intended to provide information in a summary form and is general in nature. The contents do not constitute business, accounting, taxation, investment or financial planning advice and should not be relied upon as such. Formal business, accounting, taxation, investment or financial planning advice should be sought in particular matters. O'Connells OBM Pty Ltd accepts no liability in respect of this information and any person acting solely on the information contained within does so entirely at their own risk.

CLIENT NAME O'CONNELLS OBM PTY LTD 4/03/2014 (Date Last Revised) Account Name Income JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 10 20 30 40 50 60 70 80 90 100 110 120 Income 2 10 20 30 40 50 60 70 80 90 100 110 120 Income 3 Expenses Income 10 20 30 40 50 60 70 80 90 100 110 120 Expense 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Expense 2 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Expense 3 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Expense 4 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Expense 5 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 Expense 6 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 Expense 7 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000

CLIENT NAME O'CONNELLS OBM PTY LTD 4/03/2014 (Date Last Revised) Nature Turnover Mid/Range Inflation Turnover Mid/Range Inflation Turnover Mid-Range Inflation 10% 6% 3% Description JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Income Income 2 Income 3 0 Total Income 11 11 10 0 32 22 21 21 0 64 33 32 31 0 96 44 42 41 0 128 55 53 52 0 160 66 64 62 0 191 77 74 72 0 223 88 85 82 0 255 99 95 93 0 287 110 106 103 0 319 121 117 113 0 351 132 127 124 0 383 858 827 803 0 2,488 100 110 106 103 1,000 10,000 100,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 111,419 200 220 212 206 2,000 20,000 200,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 222,838 300 330 318 309 3,000 30,000 300,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 334,257 400 440 424 412 4,000 40,000 400,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 445,676 500 550 530 515 5,000 50,000 500,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 557,095 600 660 636 618 6,000 60,000 600,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 668,514 700 770 742 721 7,000 70,000 700,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 779,933 800 880 848 824 8,000 80,000 800,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 891,352 900 990 954 927 9,000 90,000 900,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,002,771 1,000 1,100 1,060 1,030 10,000 100,000 1,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,114,190 1,100 1,210 1,166 1,133 11,000 110,000 1,100,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,225,609 1,200 1,320 1,272 1,236 12,000 120,000 1,200,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,337,028 7,800 8,580 8,268 8,034 78,000 780,000 7,800,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8,690,682 Expense Expense 2 Expense 3 Expense 4 Expense 5 Expense 6 Expense 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Expenses Budgeted Net Profit (Loss) (111,387) (222,774) (334,161) (445,548) (556,936) (668,323) (779,710) (891,097) (1,002,484) (1,113,871) (1,225,258) (1,336,645) (8,688,194)

CLIENT NAME O'CONNELLS OBM PTY LTD 4/03/2014 (Date Last Revised) Terms Description JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD 90 days Income Income 2 Income 3 0 100 11 10 0 110 21 21 0 120 32 31 0 11 42 41 0 22 53 52 0 33 64 62 0 44 74 72 0 55 85 82 0 66 95 93 0 77 106 103 0 88 117 113 0 99 127 124 0 825 827 803 0 Expense Expense 2 Expense 3 Expense 4 Expense 5 Expense 6 Expense 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 1,200 1,100 1,000 1,000 10,000 100,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 110 1,200 1,100 2,000 20,000 200,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 300 220 106 1,200 3,000 30,000 300,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 400 330 212 103 4,000 40,000 400,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 500 440 318 206 5,000 50,000 500,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 600 550 424 309 6,000 60,000 600,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 700 660 530 412 7,000 70,000 700,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 800 770 636 515 8,000 80,000 800,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 900 880 742 618 9,000 90,000 900,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000 990 848 721 10,000 100,000 1,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,100 1,100 954 824 11,000 110,000 1,100,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,200 1,210 1,060 927 12,000 120,000 1,200,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 121 12 152 15 183 18 95 9 127 13 158 16 190 19 222 22 254 25 286 29 318 32 350 35 Total Operating Cash Outflow GST Paid 114,400 11,440 224,610 22,461 334,826 33,483 445,045 44,505 556,464 55,646 667,883 66,788 779,302 77,930 890,721 89,072 1,002,140 100,214 1,113,559 111,356 1,224,978 122,498 1,336,397 133,640 8,690,325 869,033 NET OPERATING CASH FLOW (125,707) (246,904) (368,108) (489,445) (611,971) (734,497) (857,023) (979,549) (1,102,074) (1,224,600) (1,347,126) (1,469,652) (9,556,657) Cash Cash 30 days 60 days 90 days Total Operating Cash Inflow GST collected 7,800 8,460 8,130 7,935 78,000 780,000 7,800,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,455 246 Non-Operating Cash Flows Inflows 0 0 Outflows Loan Repayments Dividend Payment Share Buy-Backs Purchase of Non-Current Assets GST Payment (Refund) - assuming tax agent lodgment extension NET Non-Operting Cash Flow NET BUDGETED CASH INFLOW / (OUTFLOW) per month (334,140) (67,338) Total Budgeted Outflows Closing Budgeted Bank Balance per month (267,150) 0 334,140 0 0 67,338 0 0 166,901 0 0 267,150 0 (125,707) 87,236 (368,108) (489,445) (544,633) (734,497) (857,023) (812,647) (1,102,074) (1,224,600) (1,079,976) (1,469,652) OCT NOV JUL Opening Bank Balance Total Budgeted Inflows (166,901) 0 0 0 0 (835,529) AUG SEP 121 121 114,400 (114,279) (114,279) 152 (114,127) 224,610 (338,737) (338,737) 183 (338,555) 334,826 (673,381) (673,381) (1,118,331) 95 127 (673,286) (1,118,205) 445,045 556,464 (1,118,331) (1,674,669) DEC JAN FEB MAR APR MAY JUN (1,674,669) 158 (1,674,510) 667,883 (2,342,393) (2,342,393) 190 (2,342,203) 779,302 (3,121,505) (3,121,505) 222 (3,121,283) 890,721 (4,012,004) (4,012,004) 254 (4,011,750) 1,002,140 (5,013,890) (5,013,890) 286 (5,013,604) 1,113,559 (6,127,163) (6,127,163) 318 (6,126,845) 1,224,978 (7,351,823) (7,351,823) 350 (7,351,473) 1,336,397 (8,687,870) 835,529 (8,721,128)

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