Guide to getting the best from your Cash Flow.

Included with the bought version of BusinessPlanWiz is a Cash Flow spreadsheet that we asked our accountant to create (because she’s an expert and we’re not), for us to pass on to you. You can use it to show you what is happening now with “live” figures, and to forecast ahead with estimated figures. Of course, if you are familiar with spreadsheets you can create your own Cash Flow. But if you can lay your hands on one that already has all the functionality that you need and has been set up by an accountant, then that may be the best way to go. There’s no point in re-inventing the wheel and most small business folk don’t have the time to experiment with software!

Here’s how to get the best from your Cash Flow:

  1. Make sure it’s accurate.
  2. Try to have it spanning at least a 2 year period, so that you can “see” that far ahead.
  3. Before you start, enter any amount that you know about for the whole year; for instance, regular payments to suppliers.
  4. Update it regularly (weekly if possible) – but especially when money comes in or goes out.
  5. Over-estimate costs for year 2 (usually rising!); not by too much, but at least so you don’t get caught out. (See
  6. Estimate income for year 2 – but it may make sense not to be too generous.
  7. Don’t expect it to balance with your bank account!
  8. Don’t forget to enter VAT, both paid and due.
  9. Enter actual and any estimated interest payments.
  10. Take the time to look at it on a regular basis, not necessarily when you are entering data. It will help you to get a feel for what is happening, and you’ll almost certainly pick up the odd error too.

We use our Cash Flow on a regular basis in our business and find it invaluable. We hope yours is for you.


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