Improve your business planning with our comprehensive Business Plan Cash Flow Template, designed to simplify financial forecasting and cash flow management.
1
Identify the operating period
2
Establish sales forecast for the period
3
Calculate cost of goods sold
4
Determine gross profit
5
Identify expected operating expenses
6
Calculate net income before taxes
7
Estimate income tax expense
8
Calculate net income
9
Adjust for non-cash expenses
10
Approval: Cash Flow Calculations
11
Determine changes in working capital
12
Calculate cash flow from operating activities
13
Identify investing activities
14
Calculate cash flow from investing activities
15
Identify financing activities
16
Calculate cash flow from financing activities
17
Reconcile beginning and ending cash balances
18
Approval: Final Business Plan Cash Flow Template
Identify the operating period
In this task, you will determine the specific time period for which you will be creating the cash flow plan. This will help you understand the financial activities and cash flows that will occur during that period. Consider the start and end dates of the operating period and take note of any special circumstances that may affect your cash flow.
Establish sales forecast for the period
To create an accurate cash flow plan, you need to estimate your sales for the operating period. This will give you a foundation to forecast your cash inflow. Provide details on how you will gather information for the sales forecast like historical data, market research, or customer surveys. Additionally, mention any challenges you may face in estimating sales and any strategies you will use to overcome those challenges.
Calculate cost of goods sold
Calculating the cost of goods sold is an essential step in determining your gross profit. This will help you understand the expenses directly associated with producing your products or services. Explain the process you will use to calculate the cost of goods sold, such as considering material costs, labor costs, and overhead expenses. Furthermore, identify any complexities or specific challenges you may encounter and provide potential solutions to overcome them.
Determine gross profit
In this task, you will determine the gross profit by subtracting the cost of goods sold from the sales forecast. Gross profit is a significant indicator of the profitability of your business. Describe the importance of determining gross profit for the cash flow plan and its impact on the overall financial health of your business. Additionally, highlight any adjustments or factors that may impact the accuracy of the gross profit calculation.
Identify expected operating expenses
Operating expenses are costs incurred in the day-to-day operations of your business. In this task, you will identify and list the expected operating expenses for the operating period. Highlight the common operating expenses specific to your business and mention any fluctuations or variations that may occur. For example, expenses related to rent, utilities, salaries, and marketing.
