10/25/2017 0 Comments Cash Flow Forecasting Software FreeUnit4 Cash Flow Planning will free you from unreliable spreadsheetbased workarounds, simplify and automate the cash planning process and consolidate your forecasts.Sales Forecasting Methods.Sales forecasting is especially difficult when you dont have any previous sales history to guide you, as is the case when youre working on preparing cash flow projections as part of writing a business plan.Here, Terry Elliott provides a detailed explanation of how to do sales forecasting using 3 common methods.Note that there are all sorts of ways to estimate sales revenues for the purposes of sales forecasting, but if you plan to work with a bank for financing or are looking for angel investors for your business, you will want to do multiple estimates so as to have more confidence in the forecast.Real estate investment software solutions for concise quick and easy rental property cash flow, rates of return and profitability analysis presentations. Cakephp Admin Panel Script Download Image . Userfriendly business budgeting software that enables custom financial plans through cash flow forecasting, without the use of complicating worksheets.Get a basic guide to financial management in forprofit businesses in this topic from the Free Management Library.Method 1. For your type of business, what is the average sales volume per square foot for similar stores in similar locations and similar size This isnt the final answer for adequate sales forecasting, since a new business wont hit that target for perhaps a year.But this approach is far more scientific than a general two percent figure based on household incomes.Method 2. For your specific location, how many households needing your goods live within say, one mile How much will they spend on these items annually, and what percentage of their spending will you get, compared to competitors Do the same for within five miles with lower sales forecast figures.Use distances that make sense for your location.For example Acme Corp Sales Forecast.DistanceHouseholds.Annual Spending of Spending.Forecast Sales. 1 Mile.Miles. 50. 05,0. Method 3.If you offer, for instance, three types of goods plus two types of extra cost services, estimate sales revenues for each of the five productservice lines.Make an estimate of where you think youll be in six months such as we should be selling five of these items a day, plus three of these, plus two of these and calculate the gross sales per day.Then multiply by 3.Now scale proportionately from month one to month six that is, build up from no sales or few sales to your six month sales level.Now carry it out from months six through 1.Dont Just Do One Sales Forecast.Instead of forecasting annual sales as a single figure, use one or two of the sales forecasting methods above and generate three figures pessimistic, optimistic, and realistic.Then put the figures in by month, as depending on your business, there could be huge variations by month.Some retail firms do 5.Christmas, from the end of October to the end of December, for instance, yet barely get by June through August.Include Expenses.Now put in your expenses by month, including big purchases by season or however you buy materialsgoods.Remember, you may buy materials or inventory in say, July, for Christmas, yet not get all of your receipts until 4.RMszg8uPZzg/hqdefault.jpg' alt='Cash Flow Forecasting Software Free' title='Cash Flow Forecasting Software Free' />Christmas.There can be big cash flow implications.Also, will you be buying vehicles Capital equipment Make sure to show depreciation expense.In your expenses, put in an allowance for bad debts.Budget-Planner-Spreadsheet-Template-budget-template-easily-track-your-finances-its-best-to-work-with-real-numbers-when-coming.jpg' alt='Cash Flow Forecasting Software Free' title='Cash Flow Forecasting Software Free' />Figure how much of your sales are by cash, how much by credit card, how much by your extending credit.Deduct say four percent or more for credit card expense for that portion sold by credit card.If youre going to a bank for financing, be able to answer questions such as, have you made an allowance for a reserve cash account, for your slow months, but also in case you have to quickly replace a vehicle or equipment You say youll charge x dollars for your product, but what happens when your competition cuts the price by 3.Cash Flow Forecasting Software Free' title='Cash Flow Forecasting Software Free' />How specifically will you grow your business selling more to existing customers, selling existing products to new customers, selling new products to existing customers, and selling new products in order to attract new customers Theyre going to want to see if youve got a real plan.Remember that it is acceptable and realistic to have a negative cash flow projection for the early months of your cash flow projection period.Good Decisions Depend on Good Information.You can see that instead of estimating one big sales figure for the year when sales forecasting, a more realistic monthly schedule of income and expenses gives you far far more information on which to base decisions.Thats what keeping the books is designed to do give you information you can make good decisions on.So in effect, you need to prepare three cash flow projections, where you vary the percentage of sales or other figures to arrive at three different scenarios pessimistic, optimistic, and realistic.The pessimistic view should be the worst case situation plan to have enough capital and patience to get through that scenario.If it turns out that the actual results are better than that greatAccounting Software Can Help.Accounting software can be a great help in creating sales forecasts, cash flow projections, and keeping track of your expenses.See 6 Advantages of Using Small Business Accounting Software and The Best Accounting Software for Small Business.See also Preparing Cash Flow Projections.Cash Flow Management Tips to Keep Your Cash Flow Flowing.How to Conduct a Breakeven Analysis.Low Cost Ways to Promote Your Business.
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