• Interest on overdraft facility
• Other interest

Write-off /depreciation
• Plant / buildings
• Machinery
• Other things

You will find a excel spreadsheets with a pre-defined Operating budget at
www.DynamicBusinessPlan.com

Cash flow Budget
The cash flow budget tells if you have sufficient money to pay your bills at
the end of the month.

A cash flow budget is a chronological overview of expected income and
expenses over a given period of time. The cash flow budget looks much
like the operating budget. It has many of the same categories.

The cash flow budget focus on the cash (money) that actually has to be
taken out of the cash box or the bank. Cash to pay salary or debtors. It also
focuses on cash that actually is received from customers. Cash you can
see in the cash box or in a bank statement.

Capital requirement
A cash flow budget shows a company’s monthly capital requirement. Some
months there might be lack of cash to keep the business in operation. If the
cash flow budget shows lack of money at the end of a month you have to
find the money which is needed. It can be found in different ways:

• You can borrow more money from the bank
• You can make your debtors pay earlier
• You can delay the payment to your suppliers
• You can cut down expenses
• You can postpone a larger investment
• You can stop withdrawing money to yourself
• You can introduce 'Cash on delivery'
• You can combine all of the possibilities

The establishing and operating budget are fairly easy to make for “non
accountants”. The cash flow budget is a bit more difficult. There are more
unknown figures to calculate and evaluate. This demands a clear view of
the budgets. However, it is still basically common sense so you can do it.

You will find an excel spreadsheets with a pre-defined cash flow budget at
www.DynamicBusinessPlan.com


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