To use Dirty Cashflow download the files attached to this article. You will need Open Office, Libre Office, Office or a compatible Spreadsheet.
Use The Dirty Cashflow spreadsheet in conjunction with TurboCASH to control your short term cashflow forecasting. If you are not concerned about cash, chances are you are about to experience a surprise rude shock, or worse you are not using your resources properly. Cashflow management is a vital part of any successful business.
Your bank recon should be run in as close to real time as you can get it. Account for cash transactions as soon as they occur and keep an open eye on the future.
Dirty CashFlow What a name? Its called “Dirty”, because while TurboCASH is a highly accurate balancing accounting system, this is spreadsheet is not. Dirty Cash flow uses TurboCASH data and your “gut feel” forecasts to produce a daily working system. DirtyCash flow is not meant to be a financial reporting system of Bank Recon. It is used to QUICKLY determine the cash state of affairs and a forecast.
We use approximations to make it easy to do and do regularly. Most businesses should use this model daily. Line Items in Dirty CashFlow The first column in Dirty CashFlow is numbered. I will deal with the line items in order.
1. Typical business have multiple bank accounts and credit facilities. Use these first 6 items to input your positive cash balances.
2. In the case of Overdrafts orcredit cards you are usually in a negative, but because you have a facility you have funds available. That is what we are interested in – How much Cash do we Available.
3. OPENING BALANCE is the total of positive balances and facilities available NOW. 4. CASH coming in can come from CONTRACTS (Rentals, debit order that we know will bring us CASH IN. This does not include items already invoiced, which are handled in the next line. We are interested in the this model not in accruals, but in the actual cash that will hit our accounts in the periods under consideration. We look at this week, the rest of the month and then the months after that.
5. Debtors. This outstanding debtors report and age analysis can be pulled from TurboCASH. From the Debtors that have ALREADY been issues, in what periods will we COLLECT the CASH? The total amount accross all columns must be equal to the total of your TurboCASH Debtors Report.
6. New Sales – this will be our forecast of sales that have not yet been invoiced. We are interested, not in when we can invoice, but when we BANK these sales.
7. LOANS are inter company, from the shareholder or from a financier.
8. Use the OTHER lines for exceptional amounts. 9. CREDITORS are all the people you already owe money to.
10. Personnel costs excluding Tax
11. Fixed costs like Debot order etc
12. Exceptional Costs
13. Your Capital Purchases. Count only the CASH payable.
14. LOAN repayments
15. Your Payroll Taxes (usually paid in a different period to the Payroll)
16. Your Sales or VAT paid monthly, Bi-monthly or quarterly.
17. Any other Taxes or Government Payments (Excise duties)
18. Your Income Tax usually paid once or twice per year.
19 OPENING BALANCE will be take from Page one
20. Change in Cash is the difference between CASH IN and CASH OUT.
21. Use this if you increase or decrease your facilities
22. CLOSING BALANCE is your bottom Line. This is set up to show RED if you are negative. If you see RED go back and start “tweaking”, stop paying creditors, collect faster or borrow.
Keep all of these sheets by saving each day under a new name for example
DirtyCASHFlowMar17.odt
DirtyCASHFlowMar18.odt
The spreadsheet issoft coded sothat you can edit its structure to suit your business. If you screw up the model just download another copy here again.
