How to prepare a Cashflow Forecast in Magnifi

Cashflow Forecast

How do I prepare a Cashflow Forecast?

The Cashflow Forecast is an outcome of the Balance Sheet Projection. The Balance Sheet Projection must be completed for the Cashflow Forecast to be accurate.

The Cashflow Forecast will show the projected bank balance for any bank account that appears in the drop down, This will only show the active bank accounts which is any bank account that has been linked to a Profit and Loss Account in the Chart of Accounts. 

All values reported in the Cashflow Forecast are GST inclusive.

What determines where the Accounts show in the Cashflow Forecast?

The various labels in the Cashflow Forecast include;
  1. Direct Deposits; any PL account linked to a bank account in Chart of Accounts
  2. Accounts Receivable/Payable; any PL account linked to a Receivables or Payables accounts in Chart of Accounts.
  3. Taxes/Levies; GST, PAYGW, Payroll Tax and Superannuation. The timing depends on the Payment Terms that are set.
  4. Other Receipts; Worksheet Items that are linked to a bank account. These can be classified in the Projected Balance Sheet as either Operating or Non Operating.
  5. Other Payments; Worksheet Items that are linked to a bank account. These can be classified in the Projected Balance Sheet as either Operating or Non Operating.
  6. Income Tax; any account in the PL that has "Income Tax" as an Account Category and linked to a bank account. OR, worksheet items that are classed as an Income Tax account.

      7. Dividends; any account in the PL that has "Dividends" as an Account Category and linked to a bank account. OR, worksheet items that are classed as a Dividend account.

How do you re-forecast the Cashflow based on the Actual Results?

You simply need to import the Balance Sheet and enter the "Show Actuals to" month in the Cashflow Forecast. 

The opening and closing bank balance will reflect the actual balances and the budgets will be re-forecasts based on the actual results. For example, if actual income was $100,000 in September with 60 day payment terms, the Cashflow Forecast will show $100,000 in November.

The Cashflow Forecast will also re-forecast the GST and PAYGW.

Can I update values in the Cashflow Forecast?

Yes, you can update values for any balance sheet sub-account. You will need to select "Save" to update the calculations. 

Any new sub-accounts will need to be added under Balance Sheet.