Monthly Cash Flow Projection

A sample template is available here.

Cash on hand at beginning of month: Must be the same as cash on hand at the end of the prior month.

Cash Receipts

Cash sales: All cash sales. Omit credit sales, unless cash is actually received.

Collections on accounts: Amounts paid by credit customers.

Loans or other cash injections: All cash received other than cash sales and collections on accounts.

Cash Paid Out

Purchases merchandise: Payments for products, or material to be made into products, that are to be sold to customers.

Gross wages: Base pay plus overtime, if any.

Payroll expenses(taxes, etc.): Include paid vacations, sick leave, health and unemployment insurance and other benefits.

Outside services: Outside labor, material for specialized or overflow work, including subcontracting.

Supplies: Items purchased for use in the business (not for resale).

Repairs & maintenance: Include periodic large expenditures such as painting or decorating.

Advertising: Newspaper, radio, and television advertising; business cards, brochures, etc.

Car, delivery & travel: If personal car is used, charge in this column, including parking.

Accounting & legal: Outside services (e.g., bookkeeping).

Rent: Real estate only.

Telephone: Includes regular and cell phone, if used for business.

Utilities: Water, heat, light, and power.

Insurance: Coverage on business property and products (fire, liability); worker’s compensation, fidelity, etc. Does not include life insurance.

Taxes: Real estate, inventory tax, sales tax, excise tax, if applicable, etc.

Interest: Be sure to include interest on loan.

Other: When equipment is rented or leased, record payments here. Also record any unexpected expenditures.

Miscellaneous: Small expenditures for which separate accounts would be impractical.

Loan principal payments: Payments on all loans (including vehicle) and equipment purchases on time.

Capital purchases: Non-expensed (depreciable) expenditures, e.g. equipment, building purchases on time.

Other Start-up costs: Expenses incurred prior to first month projection and paid for after start- up.

Reserve and/or escrow: Insurance, tax, or equipment escrow to reduce impact of large payment.

Owner’s withdrawal: Includes payment for owner’s income tax, social security, health and life insurance, etc.

Essential Operating Data:

Sales volume (dollars): A very important figure that should be estimated carefully, taking into account size of facility and employee output as well as realistic anticipated sales (actual sales, not orders received).

End of Month Data:

Accounts Receivable: Previous unpaid credit sales plus current month’s credit sales less amounts received during the current month less bad debts.

Bad debts: Bad debts should be deducted in the month they are determined to be bad.

Inventory: Last month’s inventory plus merchandise received and/or manufactured, less amount sold this month.

Accounts Payable: Previous month’s payable plus current month’s payable less amount paid\ during month

This information was excerpted from a 48-page U.S. Small Business Administration publication entitled The Business Plan- Road Map To Success.