Set Up QuickBooks Cash Flow Forecast

Problem:

Cash Flow ensures that your business remains on the upfront to deal with the financial needs of your company. It typically shows the estimated revenue that you are going to get in the upcoming future, for a certain period.

It helps you draw a larger plan. Once you have accessed the Cash Flow, things become easier. The Accountingerrors technical support team is going to get you through the process of setting up the QuickBooks Cash Flow Forecast. Please note that this function is available only in QuickBooks Desktop edition, not in QuickBooks Online.

How to Set Up Cash Flow Forecast in Quickbooks

Follow these steps to ensure that you are able to set up the Cash Flow forecast in Quickbooks:

Total Time: 8 minutes

  1. Step One

    Launch your QuickBooks Desktop application.

  2. Step Two

    Go to

  3. Step Three

    Click on the Company & Finance option from the list of options.

  4. Step Four

    Next, click on Cash Flow Forecast.

  5. Step Five

    QuickBooks puts together a report of your receivable, payable and bank accounts. You can perform many operations from here:

    đź’  You can view the report and adjust it according to specified periods.
    đź’  You can compensate for the customers who are going to miss their due date.
    đź’  You can shift the date range.

    Note: If the report doesn’t seem normal, you can review the information you had entered in the Company account. The case probably could be that you have missed either an important purchase, invoice or any other important detail which creates a big difference in the reports.

  6. Step Six

    Take the help of Statement of Cash Flows to compare the current projection with your old cash flows.

  7. Step Seven

    Once again go to the Reports menu and click on All Reports.

  8. Step Eight

    Click on Business Overview.

  9. Step Nine

    Click on the option Statement of Cash Flows.

  10. Step Ten

    You should be able to see the actual cash flow of the specific period in the past. This factor is going to be helpful in determining the influence of factors on the rise and fall of the cash flow projection. You can also get to know the certain ranges in which your cash flow falls. With the help of this setting, you can improve your business strategies.

Set Up Cash Flow Forecast for A Small Period of Time in Quickbooks

QuickBooks offers another option of viewing your Cash Flows for a minimum time of Six Weeks so that you can be at par with the bills and ensure that your employees get paid on time in the upcoming month.

  • Access the Company menu in your QuickBooks Desktop. Click on Budgeting and Planning.
  • Click on Cash Flow Projector.
  • Fill in the starting cash balance. If you are not aware of it, check your past month’s baseline to get an idea.
  • The predicted cash receipts should be entered in the Cash Inflow sections. Ensure that you have entered all the revenue sources to get an accurate Cash Flow picture. Fill in the steady income first and then enter the payments that are going to get processed within the next six weeks.
  • Next, enter the business expenses in the Cash Outflows field. QuickBooks will have your regular monthly costs in it, however, ensure that you do not miss any one-time paid fees or any other fees that get deducted only quarterly, bi-yearly or yearly basis.
  • Go through the reports and check where your business flow ends up in the next six weeks. Once you have entered the figures in the forms on this tool, click on Preview to see which way your projection adjusts.

Once you have gone through the process, you should be able to project the Cash Flow of your QuickBooks company account.

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FAQ

  1. How can I create the forecast in QuickBooks?

    Open the company menu and then choose the “Planning & Budgeting” option. Now, choose the setup and hit the “Create New Forecast” button. Then, you have to set the financial year for the forecast. You have a choice to choose either “Create Forecast” from scratch or “Create Forecast” from the previous year’s actual date. Hit the Ok button to finish the program.

  2. What is the main difference between the forecast and a budget in QuickBooks?

    Forecasting and Budgeting are the most essential financial tools for all small and medium-sized businesses. A forecast is a reflection of what happened and a budget defines what you want to wish to do to make more profits.

  3. Is QuickBooks cash flow forecasting necessary for business?

    Yes, it is necessary to manage the expected cash movements for a specific period in the future. It helps to create an appropriate plan for business productivity as per future predictions.  It estimates all profits and losses which leads you to know where you need to focus or where you are getting profit.


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