It's an exciting day at Ignite Spot. We're launching a free cash flow forecast in Excel that you can download instantly. Check it out.
Why Cash Flow Forecasts Trump Budgets
A budget tells you what you can't afford, but it doesn't keep you from buying it. Those are words from Mr. William Feather and I happen to agree with him. A budget is a good idea in theory, its just not the best tool for controlling spending behavior.
A cash flow forecast does a much better job. Why? Because when you enter your purchase, it shows you how your cash will change day by day. It gives you insight into your ability to meet payroll obligations and other business objectives without going negative.
How The Tool Works
I Built it in Excel so that it would be customizable for most businesses. If you have a rudimentary knowledge of the software, you should do well with it.
There are three different tabs in the tool:
- A Cash Flow Summary - This shows, in graphical format, how you are doing.
- A 30-Day Cash Flow Forecast - This allows you to enter information that will show you your cash position each day for the next month.
- A 3-Month Cash Flow Summary - This view gives you an understanding of how your cash will change over the next quarter.
I hope the tool helps. Make sure to watch the video if you want guidance on how to use it. Also, don't forget to subscribe to our YouTube channel so that you can get more of this in the future.