Forecasting Financing Taxes And Advanced Topics
Cash flow assumptions
Cash flow represents the money coming in and going out of your business. Managing cash flow is one of the most critical aspects of business. In the planning phase, your cash flow estimates can help you decide whether your business idea is viable. The Cash flow assumptions page lets you set and update a few basic assumptions about when you pay and get paid. You'll see the results of these settings in your Cash Flow table.
For a helpful primer on this subject, read:
Accounts receivable and Accounts payable
Accounts receivable is also sometimes known as incoming payments or A/R. When you make sales to your customers on credit, you'll need to set up Accounts receivable in your forecast. Accounts payable, on the other hand, is sometimes referred to as outgoing payments or A/P. When you make purchases from your suppliers to run your business, if you pay for any of them on credit, you'll need to set up Accounts payable in your forecast.
For details on managing these settings, read Adding Accounts Receivable and Accounts Payable to your forecast.
Inventory
If your business will manage inventory, turning on this setting will automatically build inventory usage and reorders into your cash flow.
For details on how to add inventory to your forecast, read Adding and Managing Inventory.
Using Help Me Forecast
Help Me Forecast is a guided, question-and-answer experience that helps you build a starting forecast in LivePlan.
This AI-powered tool is designed to get you to a useful starting point quickly. Reviewing and fine-tuning the results in the Forecast lets you apply your own knowledge and make sure the final numbers reflect how you expect your business to operate.
For the full walkthrough — including adding reference files, reviewing proposals, and editing entries afterward — see Using Help Me Forecast.