Cash flow projections are usually divided into months:

• How much cash comes in each month?
• How much cash will go out?

Cash projections usually have two components: Cash in and Cash out

• Use sales forecast to project cash in
• Include payment from accounts receivables
  • Examine past records
• Include cash from outside sources
  • Loans
  • Interest on savings
  • Interest on investment
  • Owner’s capital contribution
• The majority of cash going out of your business funds operations: making products or providing services and overhead expenses
  • Use operational and cost plan
  • Pay attention to payments in advance and accrued payments
• Others include:
  • Cash for new equipment or other investments
  • Loan repayments
  • Tax payments
  • Owner’s withdrawals
• Include production costs:
  • Paper
  • Ink
  • Salary
  • Employee insurance
• Include overhead:
  • Admin staff salaries, delivery, packaging, stationery, telephone and Internet, license fee, interest expenses, utilities, rent

The final output should be your cash flow projection: