Introduction to this document

Funds flow reconciliation

A rolling monthly cash flow forecast should be based on a profit and loss forecast. However, certain movements in the profit and loss forecast are non-cash items for the month concerned, for example, changes in provisions, depreciation, prepayments and accruals. These need to be kept track of too.

Balance sheet

Building cash flow forecasts together with profit and loss and balance sheet forecasts will ensure that your models are more accurate. The balance sheet will enable you to manage capital expenditure as well as non-cash items such as changes in provisions, depreciation, prepayments, accruals etc.

Our Funds Flow Reconciliation between the forecast profit and the forecast cash balance will help to document these non-cash movements for the board.