Cash Flow statement projection for small business in QuickBooks

If you are going to succeed in business, cash flow projection is a must-have skill you should master - After all cash as they say is the king.

Every business survival is dependent on the owners' ability to manage and project an organisation's cash flow for effective fund application.

QuickBooks, in all the accounting transaction record automation, understands this concept and has gone further to build a system which you can use to project your small business cash flow based on your current cash and bank balance, expected income and bill payable.

Here are steps to project your cash flow in QuickBooks using Cash Flow Projector

On the QuickBooks menu, click Company, select Planning & Budgeting and Click Cash Flow Projector

The Cash Flow projector uses your QuickBooks data to project and draw a financial model for your cash flow.

Follow the on-screen instructions to set up your small business cash flow statement projection.

Click Next

This window shows your current cash and bank balance in QuickBooks based on your previous transaction record up to the period you want to project your cash flow.

According to Intuits,

'The Beginning Balance is a total of any accounts selected for use in the Cash Flow Projector combined with any manual adjustments. You can select accounts and make adjustments on the Beginning Balance page.
The Account Information section of the Beginning Balance page shows all your accounts that contain cash, such as a chequing or saving account. The current balance for each account is also displayed. You may select a single account or a combination of any of these accounts to determine your beginning balance.
The Beginning Balance Summary shows your current balance based on the accounts you selected. You can enter any adjustments to your current balance in the Adjust Balance field. If you have entered all your cash transactions in QuickBooks, an adjustment may not be necessary.
Note: The adjustment made to your beginning balance will be remembered each time you use the Cash Flow Projector until you delete or change the adjustment entry.'

Click Next

This window shows your expected cash inflow for the next six month based on your cash receipts and adjustments.

When to adjust your cash receipts - If you know you have additional cash coming in that is not part of your itemized cash receipts, you can make adjustments in the Adjustment fields of the Cash Receipts Summary. Any adjustments you make in the Cash Flow Projector will not affect any information you have entered in QuickBooks.

Note: All Cash Receipts adjustments are date specific. They will remain in the Cash Flow Projector for the specified time period.

Click Next

Use this window to select your estimated expenses and adjustments.

This window shows the list of your accounts payable and necessary adjustment (additional unpaid bills) to be accounted for, for the next six months.

Review your data entry and click finish projection.

Your small business cash flow projection

Use this tips to learn how to do cash flow projection in QuickBooks for small business