A company does not fail because it loses money. It fails because one day it cannot pay, while its P&L is in profit. The gap between the two is the working capital requirement, and it is visible only on a monthly cash plan.
This workbook separates result from collection strictly. An invoice issued in January and settled in April appears in January in the result and in April in the cash — which is the whole point of the tool.
The workbook runs on twelve columns, one per month, plus a parameter block at the top: the term you grant customers, the term you obtain from suppliers, inventory turnover. That block is not decoration — it is what shifts a sale recorded in one month to the month the money actually arrives. The rows are already laid out: receipts, payments, VAT, social and tax due dates. You enter your amounts and your three parameters; the working capital requirement, the month-end balance and the break point compute themselves. After that, extending a term is a single cell, and you read straight away the month it costs you.
This table shows the month the money runs out; it does not conjure it up. What follows happens elsewhere: negotiating a term, deferring a purchase, invoicing earlier. It does not replace your bookkeeping, and we take no part in the data entry or in analysing your variances. Nor does it suit someone whose first need is a document to hand to a bank: those presentation requirements are carried by the business plan template. Here, the reader of the table is you.
What you receive
- An Excel workbook: monthly receipts and payments, VAT, social and tax due dates.
- Automatic calculation of the working capital requirement and of the break point.
- Adjustable customer, supplier and inventory terms, to test the effect of lags.
Included
- Template updates for 12 months
Not included
- Entering your data
- Analysing your variances
- Any bookkeeping or audit engagement