Cash Flow Forecasting Explained | How to Complete a Cash Flow Forecast Example

[@gilamdokwem4882]

This is about the best explanation and coaching on cash flow forecast. You've just given me more than what I needed to keep writing the best business plans professionally. Thank you so very much indeed, sir.

[@TwoTeachers]

Thank you mate, really appreciate that and best of luck with the business plan 👍

[@tatendamangena7296]

been through tons of 'cashflow forecast' videos but this is on another level. Didnt need the dont forget to subscribe

[@TwoTeachers]

Thank you for that really glad we could help out!

[@chickp100]

This was brilliant! I like when you said to stop the video and to gain the answers myself, I did a mistake on the last month when i forgot to add the closing balance to the opening balance and carry this over, so that's where i went wrong. I think you explained this perfectly and i have hit the subscribe to learn more. Thank you so much!

[@TwoTeachers]

This is great to hear, just glad we could help and appreciate the kind words and subscription of course!

[@chickp100]

@@TwoTeachers I am going to attempt to do this today after collecting all info to fill entries I will let you know how I get on. Wish me luck!

[@Mire1609]

Very well explained!! I now understand how to put together the cash flow forecast for my business start up :)

[@TwoTeachers]

That's superb to hear Mirella, glad it's helped you and all the best with your business start-up, hope you smash it.

[@albertcalvin1007]

you prolly dont give a damn but does anyone know a method to get back into an Instagram account? I stupidly lost the password. I would appreciate any tips you can give me!

[@marvincap82]

Wow! Now I understand the Cashflow projection project. Great video!

[@TwoTeachers]

Great to hear, thanks for the feedback, glad you found it helpful!

[@TriceeBC94]

Oh my gosh! Thank you so much for this. You explained everything so well. Much love 💙

[@TwoTeachers]

You’re welcome. Glad we could help 👍

[@silvergrapes488]

great vid! helps alot during lockdown as a business student, this wont be the last video of yours i watch!

[@TwoTeachers]

Glad it was helpful! Appreciate you saying so.

[@angelol9695]

Amazing video you just teach me more than my teachers 🔥🔥

[@TwoTeachers]

Happy to help, great to hear the positive feedback!

[@YeshwanthNandakumar]

Thanks for tis vedio because today I found this today so much harder and it is diffcult to understand but watching your vedios I can clarify my doubts and you are the best teacher ever in the world with a great explainations and good examples thank you so much sir,

[@TwoTeachers]

This is great to hear and you are most welcome!

[@matthewbradshawyearl6996]

Very helpful, thank you

[@TwoTeachers]

You're welcome, glad you found it useful 👍

[@JalanJalanAjah]

Thank you💗. It's simple example but important basic knowledge :)

[@TwoTeachers]

Glad you think so!

[@jenniferrogers3735]

Thank you for making this video, it is extremely clear to understand. My challenge though is that I am now starting a home business, invested everything plus a loan to get the structure in place with furnishings. I simply don't have money from a previous month. So there is no opening balance, but I need to do a forecast as a requirement to open a business account. Any suggestions how best to navigate this?

[@TwoTeachers]

The opening balance is whatever is the closing balance left from the previous month, whether that is 0 or a negative amount i.e. - 1,000. So if you had - 1,000 in January that would be the opening balance in February. Any income from February would then minus the 1,000 making the closing balance from February. Best of luck with your business 😁

[@annika2781]

Thank you! This video helped me a lot!

[@TwoTeachers]

Glad it helped!

[@JoeBUCKLEY-lk8bo]

I loved this video so much!! SO useful and so well explained!!

[@TwoTeachers]

Appreciate you saying this Joe, it’s great to hear 😀

[@bikassingh7469]

Can you pls advise as a bank what should be the best approach for cash optimization/forecast

[@TwoTeachers]

Hi Bikas, thanks for getting in touch, unfortunately we cannot provide advise for legal reasons. Good luck with your decision on the approach.

[@hindaali8982]

This is well explained. Thank you so much.

[@TwoTeachers]

No problem. Happy it helped you out 😁

[@abhishekrai4325]

Thanks a lot man. 💚🙂

[@TwoTeachers]

You're welcome!

[@sofiekuurnetervo4066]

very helpful!

[@TwoTeachers]

Thank you, glad we could help 😁

[@billybgaming]

Thx For Helping

[@TwoTeachers]

You're welcome Billy, great to hear you found it helpful.

[@quinamasarira2116]

thank you. We need more channels for i/gcse students, since some teachers do a shitty job of explaining.

[@TwoTeachers]

Thanks for the positive feedback Quina, glad you found it useful. I'm sure they are doing there best, hopefully you find many of our other videos just as useful.

[@Midnight_1898]

i know. my teacher cant even teach without giving people detentions

[@AbyssDuelist24]

Very useful video and well explained!

[@TwoTeachers]

Thankyou, that's great to hear 👍

[@fardeenshamsab4254]

Great work 👏 🇦🇫🇦🇫🇦🇫

[@TwoTeachers]

Thanks really appreciate that! 👍

[@Sommerrrx]

Sooo helpful

[@TwoTeachers]

That's great to hear Amrah.

[@magicmagic3747]

Love your resources thank you

[@TwoTeachers]

Thank you, really pleased you like them 👍

[@magicmagic3747]

@@TwoTeachers we use them at college extensively , we should be thanking you keep them coming please

[@TwoTeachers]

@@magicmagic3747 Glad your college like them! We have no plans on stopping 😁

[@magicmagic3747]

@@TwoTeachers that's good to hear 👍🏼

[@brendencarrington8251]

Great video lad

[@TwoTeachers]

Thanks Brenden, really appreciate you saying that.

[@bennybenitez2461]

Brilliant

[@TwoTeachers]

Great to hear Benny, appreciate the comment.

[@georgekerr1401]

When completing a forecast how do you input the forecast for things such as building repairs for example? I have previous years accounts, do I split it up over the month or just guess in one of the months that there could be a repair?

[@TwoTeachers]

It is best to try and be as accurate as possible so you can get an accurate forecast. If you have previous years accounts you could look at the historic data and see if there are certain month and amounts that were common for building repairs and then allocate them accordingly to the best of your ability. As it is a forecast there is some estimating however using historical data could help this be as accurate as possible. Hope this helps 👍

[@emretorbas8853]

Amazing

[@TwoTeachers]

Thank you, great to hear you found it useful.

[@AmmarKhan-vs2ti]

I want to know if i pay rent for 1 year in advance, how shall i put in cash flow forecasting ? I shall put monthly rent amount in each month forecasting or one year rent amount in the month i will pay?

[@TwoTeachers]

If you pay rent for one year in advance, you should put the one year rent amount in the month you make the payment in your cash flow forecast. This means that the monthly rent amount should not be included in the cash flow forecast for the remaining months of the year. For example, if you pay £12,000 for one year of rent in January, you would include the £12,000 payment in your January cash flow forecast and then exclude the monthly rent amount from your February through December forecasts. This approach accurately reflects the cash flow impact of paying rent in advance and helps you to avoid double-counting the payment in your monthly forecasts.

[@DreamFirms]

Informative video! I learned a lot!

[@TwoTeachers]

Glad it was helpful! Thanks for the feedback.

[@bikrampandey-m2b]

hi Could you please tell me if there is any technique or mechanism to forecast cash flow for company?

[@TwoTeachers]

Good question, there isn't really a set technique or mechanism Bikram. A business just needs to identify all of its predicted income and outgoings for each month then put them into a table to calculate the cash flow for the set period. It's just a prediction to help make business decisions and it's not an exact science so the actual inflows and outflows will vary.

[@abdullahalhashemi2052]

nice

[@TwoTeachers]

Thanks for saying so :)

[@Plant.Eat.Licious]

Hello and thank you for your videos, now I am starting the process of a cash flow forecast and I do not understand the net cash and closing balance. Can you explain how you calculated the amounts in the video. Thank you.

[@TwoTeachers]

Net cash flow is the total cash inflow minus the total cash outflow. In the video for April that would be 6,750 - 4625 = 2125. Net cash flow = 2125. Closing balance is the opening balance plus net cash flow. In April in the video this is 1,200 + 2,125 (from the previous calculation) = 3,325. Closing balance = 3,325. Hope this helps 👍

[@onelove762]

is there a need to include capital (under cash inflow) and equipment/fixed assets ( under cash outflow)if its not a new business?

[@TwoTeachers]

If the capital and equipment/fixed assets transactions are not significant or relevant to the current financial reporting period for an existing business, there may not be a need to include them in the cash flow statement. However, if these transactions are substantial or if disclosure requirements mandate their inclusion, then it would be appropriate to include them to provide stakeholders with a comprehensive view of the cash flows within the business.

[@fakhirmalik7827]

brilliant video keep it up

[@TwoTeachers]

Great to hear, great to hear it helped Fakhir.

[@hopee222]

who else is listening to this in business

[@TwoTeachers]

We are 🙋‍♂️🙋‍♂️

[@user-bn1tk8xr4n]

how did you get the opening balance

[@TwoTeachers]

The first months opening balance is brought forward from the previous accounting period. Each months opening balance come from the previous months closing balance. Hope this helps 👍

[@user-bn1tk8xr4n]

@@TwoTeachers thank you so much !!

[@doorhammer6950]

why is the money melting in the background pictures

[@TwoTeachers]

Because the video is so hot, it's off the charts, the money can't handle the heat 😂 only joking it was just an effect we added to the background image 👍

[@ollymullan4067]

what a poggers video

[@TwoTeachers]

Glad you like it. We thought that too 👍

[@ollymullan4067]

@@TwoTeachers helped me through my business lesson very nicely

[@TwoTeachers]

Great. Just glad to have helped!

[@115dancingqueen]

Why oh why is there a need for noise in the background? Would this be appreciated in a classroom?

[@TwoTeachers]

Sorry you didn’t like how the video was produced 😞. Hopefully you found the content and worksheet some what useful.

[@cancer2361964]

how frequently should we perform this process

[@TwoTeachers]

Yearly ideally but more frequently if your sales fluctuate often 😀

[@hopee222]

hey

[@cjb658]

Hey

[@TwoTeachers]

Hey 😀

[@andrewwhite6]

Thank you. Background music????

[@TwoTeachers]

You're welcome Andrew and yes there is background music.

[@ashishporwal1454]

Bro, I needed to know how you predicted that and you completely skipped that, i also know how to put values in cells!!

[@TwoTeachers]

Excellent work 👍

[@Sommerrrx]

Thsi videos amazing but the amount of ads 😭

[@TwoTeachers]

Ha, we place plenty of ads so that you get a well deserved rest during the video and have time to let the information sink in, basically stopping information overload. Only joking, they are just automatically set by KZbin, so just appear whenever. Glad you liked it though.

[@Sommerrrx]

Two Teachers 😂😂 this made me laugh , great video though Xx

[@TwoTeachers]

@@Sommerrrx ha ha, great to hear.

[@FlaschDJ]

After enduring 8 minutes of annoying background music, i screamed aloud and left.

[@TwoTeachers]

Thanks for enduring the full 8 minutes 😁😂

[@FlaschDJ]

@@TwoTeachers Right

[@TwoTeachers]

Left

[@cancer2361964]

00

[@TwoTeachers]

7

[@zucti]

yo

[@TwoTeachers]

Yo

[@LinaBarokas]

I suppose this should be an education video, but I don't understand why did you prefer to ruin it by adding some kind of club music. I wish I could stand the music and continue to listen, but I couldn't.

[@TwoTeachers]

Sorry to hear that, we don't put the music in the background any more, we tried it and decided we preferred our videos without it aswell.

[@LinaBarokas]

Thanks for consideration, I would like to watch the other ones too :)

[@haplessviper]

not helpful disliking

[@TwoTeachers]

Now that's not very legendary is it G456 ya boi?

[@basawanni]

Background music is really annoying

[@TwoTeachers]

We feel your pain Sharad, going to reproduce this video in the future without the music 👍

[@sarahserwar5909]

Very useful thank you 🙏

[@TwoTeachers]

Thanks for watching 😁