The Cash Flow Forecast
You set this out in very much the same way as a Profit Forecast but, instead of showing when the sale is made, you put in the amounts when the bill is paid. So a cash payment is shown in exactly the same place, but a payment on invoice will be shown in the next month.
You have a section at the top for Income, then you add up Total Income at the bottom of this section.
Next, you have a section for Expenditure. This includes all the supplier costs and other costs that go to make up your cost of sales, as well as your overhead costs. Remember that suppliers will mostly also charge you VAT.
You should also include in here, on a row called Capital Expenditure, the full cost of any equipment, vehicles or other machinery that ...
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