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.
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
Frequently asked questions
How does it differ from a forecast?
A forecast thinks in results, at invoice date. A cash plan thinks in collections, at settlement date. A company can be profitable on the first and out of cash on the second.
Do I need up-to-date bookkeeping?
Not for the forecast part. Yes if you want to compare planned against actual, which the workbook supports.
Does it suit an import business?
Yes, and that is a frequent use: lags are long there, and the model lets you set the delay between domiciliation, payment of the supplier and the sale.