That includes payroll, taxes, payments to suppliers and vendors, rent, overhead, inventory, as well as the owner’s compensation.Ī cash flow projection (also referred to as a cash flow forecast) is essentially a breakdown of expected receivables versus payables. Accounts Payable:refers to the exact opposite-that is, anything the business will need to spend money on.Accounts Receivable: refers to the money the business is expecting to collect, such as customer payments and deposits, but it also includes government grants, rebates, and even bank loans and lines of credit.In order to properly create a cash flow forecast, there are two concepts you should be aware of: accounts receivable (cash in) and accounts payable (cash out)
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |