Cashflow: Closing Bank Balance vs Calculated Bank Balance

Cashflow: Closing Bank Balance vs Calculated Bank Balance

Having completed the budget cycle, it is valuable to be able to monitor performance against the budget. Forecast 5 allows you to do this through either integration to common financial packages (refer your reseller) or entry or import in the actuals screen.


In the processing of actuals, we treat the information entered as correct. This creates a potential for differences reporting caused by processing or entry of the actuals balances which do not match the calculated results from Forecast 5.


If, for example, your budget for sales was $10,000 for the month (Ignore Tax) and the actual sales entered is $20,000. The balance sheet debtors should be entered as $20,000 however your debtors may be entered as $15,000.

Forecast 5 calculates that the debtors are $15000 and therefore derives that the balance of $5000 must be cash received in that month.

 

Solution:


In this scenario we will report the system calculated bank figure in the cash flow below the actual entered bank balance. The cash flow report will report the actual balance but the entries will not total to this figure. In the rolling and variance cash flow, a bottom figure of calculated bank will highlight any differences. These can be fixed by entering the correct actuals.


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