difficult to [redict, large impact on cash flow, customers not paying regularly
4 of 9
regular outflows
make planning easier since the bussiness is expected to spend the money
5 of 9
irregular outflows
can create problems for the business as it is unexpected, replacing machinery
6 of 9
cash flow forcast
receipts- records what the business expects to recieve, net in/outflow- the difference between reciepts and payments, payments- what the business expects to spend
7 of 9
rules of cash flow
nothing about profit, the closing balance of one month is the opening balance of the next, a negative closing balance does not mean bankrupt
8 of 9
vital to business
identifies problems before they happen, plan to use excess cash, help to plan a project with minimal borrowing, help support applications for borrowing
9 of 9
Other cards in this set
Card 2
Front
purchases, rent, rates, wages, salaries
Back
outflows
Card 3
Front
make it easier to plan, customers pay regularly
Back
Card 4
Front
difficult to [redict, large impact on cash flow, customers not paying regularly
Back
Card 5
Front
make planning easier since the bussiness is expected to spend the money
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