Cashflow: Why is my closing bank balance different to the next months opening balance?
Issue:
When in actuals, your opening bank balance for a projected month does not equal the closing balance for the actual month before.
Cause:
This is because the closing bank balance for an actuals month is calculated based on the Net Cashflow less the Opening Bank Balance (all actual entry).
E.g.
Receipts = $10,000
Payments = $5,000
Net Cashflow = $5,000
Opening Bank Balance = $50,000
Net Cashflow ($5,000) + Opening Bank Balance ($50,000)
Closing Bank Balance = $55,000
And the projected month takes the Actual entry of the month prior to run through the same calculation:
Receipts = $10,000
Payments = $5,000
Net Cashflow = $5,000
Opening Bank Balance = $48,000
Net Cashflow ($5,000) + Opening Bank Balance ($48,000)
Closing Bank Balance = $53,000
Solution:
If you believe the Actual entered bank balance to be correct ($48,000) then you need to go through and check the Payments and Receipts have been entered correctly.
If you believe the (calculated) closing bank balance ($55,00) to be correct, then you need to adjust the Actual Bank Balance to the Closing Bank Balance.
Once that has been correct, refresh the reports and you will see the cashflow balance.
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