Cashflow + Forecast Flashcards
1
Q
What is CFF?
A
It is a prediction/estimation of the movement of cash in and out of a business in a period of time
2
Q
How to improve CF?
A
Improve revenue
Increase prices
reduce wage bills
Cut costs
3
Q
Net cash flow formula?
A
Net cash flow = Cash inflow - Cash outflow
4
Q
Closing balance formula ?
A
Net cash flow + opening balance
5
Q
Why should start ups use CFF?
A
Used to find potential cash shortages and prevent or reduce in advance
Ensure that business can pay suppliers and employees
