How do you do cash flow projections?
Asked 4 years ago
How many months should a cash flow projection generally be for? I want to do a 6 moth cash flow projection, but I do need some help with how to do it. Any help would be super! TAI
Gareth Browne
Thursday, November 11, 2021
The formula for this is as follows:
Find your business cash total for the start of the period.
Estimate incoming cash for next period, sales, subscriptions, shipping, etc.
Estimate expenses for next period, taxes, operating costs, shipping costs, etc.
Subtract estimated expenses from income.
Add cash flow to opening balance.
And there you go.
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