Then you can either type the cells you want to add together in brackets – e.g. To get started, go to the cell where you want the total to be and type =SUM. So, it really is worth getting your head around this.
#Cashflow forecasting plus#
It’s much quicker than adding together loads of numbers on a calculator, plus it means that if you change a figure, then your total will change automatically. However, SUM isn’t one of these – in fact, it’s dead simple.Īll it means is that you’re adding together whatever is in particular cells (each of the boxes in a spreadsheet is called a cell) to get a total for that month, year, etc. It’s easy to be intimidated by the wide range of complex formulas used in spreadsheet programs like Microsoft Excel. Net cash outflow – A fancy way of saying that your business is spending more than it’s earning – in other words, it’s losing money. Net cash inflow – A fancy way of saying that your business is earning more than it’s spending – in other words, it’s making money. If, for example, a business made and sold wooden stools, the gross profit would be the total amount the stools sold for, minus the cost of the wood used to make them. In very simple terms, it’s the money you make from selling the things you make (or buy), minus the money you spend making (or buying) the things you sell. Gross profit – Your gross profit is the amount of money that you make from sales, minus the costs of sales. Most of this money will be either overheads (see above) or costs of sales (things you buy that are directly related to the things you sell). This will mainly be from sales, but could also include things like tax rebates, business loans, or other outside investment.Ĭash outflow – This one is also pretty straightforward – it’s the money that goes out of your business.
One important point here: if you run a services business, then all your costs are overheads.Ĭash inflow – This one is nice and easy – it’s the money that comes into your business. Other common overheads include insurance, rent, and advertising – in other words, the running costs for your business. For example, if you run a pottery business, the clay you buy to produce your pots would be part of the costs of sale, but the electricity that powers your studio would be an overhead.
Overheads – The money you spend on your business that doesn’t directly relate to your sales.
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