Estimating for Cash Flow Worksheet - Quia



Estimating for Cash Flow Worksheet

It is important to remember that a Cash Flow Worksheet deals with just that – cash. It is actual money in and out, not money earned but not yet received, or payments due in the future.

We recommend doing your worksheet in a spreadsheet as any change in numbers is instantly recalculated for you, but you can do it just as well with pencil and paper – just more time consuming. You can use Excel or similar programs. has free softwares that are compatible with and similar to Microsoft Office Word, Excel etc. It is worth your time to learn a simple spreadsheet.

In order to complete your cash flow worksheet, if you have not already been in business for a while, you will need to make some estimates on income and expenses. These inevitably will not be perfect, but should be as realistic as possible. Do not make the mistake of “working the numbers” in order to make your worksheet look good. You need to know in advance if there will be problems, and whether you will need to increase income or cut spending to stay afloat.

If you are not sure what reasonable estimates will be for a given category, see if you can talk with someone in the business and get some feed back. Otherwise there are some common sense tools you can use.

Cash In/Revenues

When estimating revenues some of the things to consider are:

What will your average fee per horse be?

If you don’t know, check with other farriers/practitioners and see what they charge

How many horses will you average a day/week?

Consider your skill level and stamina, how many can you do?

How far apart will they be? How much drive time involved?

What is the potential in your area?

How quickly can you grow your business?

How many people will pay that day vs. later?

How long might you have to wait to get paid?

Now you can take the number of horses you expect to do per month x average fee. Deduct the % or $ amount you do not expect to collect in that month.

Add in payments you receive from previous months.

Add in any other misc. cash coming in.

Cash Out/Expenses

Make a list of everything you can think of that might be an expense, even if it is only once a year, and how much it will cost.

Examples

Gas – how far will you be traveling? What are gas prices? You can calculate based on number of miles and the mpg your car gets.

Will your vehicle need routine or major maintenance/repair? How much will it be.

Tools – how many horses can you do before needing a new rasp/knife etc? Calculate based on estimated number of horses.

Phone – what your monthly bill is likely to be

Supplies – invoices, checks etc.

Inventory – do you plan on carrying items to sell? How much will you carry and what will the cost to buy them be?

Acct/Legal – will you keep your records and have an accountant/service do your taxes? What will the cost be?

Do you plan on advertising? Where and how often and what will the cost be?

Based on your calculations, plug the expense numbers into the anticipated months in which they will occur.

For every month you will have

Starting Cash for the month

Plus – Revenues/Cash In

Less – Expenses/Cash Out

Equals – Ending Cash for the month

Ending cash for each month is the starting cash for the next month.

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