Monday 9 October 2017

B2 Understand the tools (another tool) that business users plan for success - cash flow forecasting

Hi year 10 &12 ImberEntrepreneurs

This week we will look at the business tool cash-flow forecasting.  You will need to know:


  • Analyse a business' finances based on cash-flow information and identify possible issues and suggest potential solutions for any given business with a cash surplus or deficit 


  • Identify the timings of inflows and outflows
  • Understand the benefits of using cash-flow forecasts to plan for success in a business (e.g. to produce new goods and services, invest in new resources, expand / reduce activities) and explain the associated risks to businesses of not completing a cash flow forecast.
  • Compare a cash flow forecast from given information, showing individual and total inflows, individual and total outflows, net inflows and outflows and opening and closing balances.

  • What the purpose of a cash-flow forecast is - identifying the money that should be coming into the business (inflows) and the money going out of the business (outflows) over a period of time,
  • Be able to identify inflows and outflows
  • Be able to explain the purpose of a cash-flow forecast and how it identifies the flow of cash through an business over a period of time
  • Understand the sources of cash coming into the business (inflows)
  • Understand the sources and destination of cash leaving the business (outflows)

SO you now have the spec of what you need to learn next.
Today's lesson starter is working in pairs of TWO (with a researcher and a good talker:
  1. Explain the definition of cash flow. Inc visual and example and the difference between forecast and statement(10mins + 10mins)
  2. The purpose of cashflow
  3. Explain what an OUTFLOW is with examples of some!
  4. Explain what an INFLOW is with some examples of some!
  5. Explain the associated risk of not doing a cashflow forecast before you start a new business
Then in your pairs you will have 5 minutes to present what you have found out with visuals and the use of a white board or Google slides.  The best presentation will make it to this blog page and earn you a 'praise email'.

Good luck and do well
Mr T

My first cashflow forecast

Next lesson - Profit or Cashflow what's the difference? and my version of what you did last lesson here

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