If you don't have enough money in the bank on the day that a bill becomes due, you may be in trouble. Making sales and receiving payment for those sales often happen at different times, and it's easy to be caught short of cash. This regular movement of cash in and out of your business is known as cash flow. Sage 50 Accounting can help you manage and analyse your cash flow so you can examine where your revenues and expenses are coming from, and project future cash flow.
When operating a business, it's not always easy to assess where your earnings and expenses are being allocated. The Statement of Cash Flows helps you determine which categories of cash flow (operating, investing, financing) you should be most concerned about, and shows the changes to various accounts over a period of time.
A cash flow projection can be extremely useful for managing your business and ensuring that you have enough money to cover future bills. This report summarizes the bills that will be coming due in the future as well as money you should be receiving from customers and other sources.
Two ways to forecast potential cash-flow problems:
Display a Cash Flow Projection