What are the benefits of a written cash flow plan?

Answer 1

Written cash flow plan gives a transparent disbursement of money to projects and expenses. It provides the users a bird's eye view of where the money will go and it is good for accounting purposes.

Answer 2

Hi Lisha,

I feel there is a benefit or two of a written cash flow plan! For one if you put something in writing you are in a way solidifying it! Making it more concrete....a goal so to speak. As with anything in life we need rules and guidelines. For instance, if a speaker is giving a lecture on financial planning and he stands before you and simply explains the benefits of planning it seems to slip away into the air, but if you have something to look at we as humans seem to register this in our minds a little easier therefore picturing a plan and watching it come to fruition. Bottom line have a written plan will give you something to follow, something concrete. Look at it regularly measure against what you anticipate and what is actual. It can help you increase your flow and see the areas you need to work on. Try a chart. I think that might work best. By the way I am a mortgage consultant and if you ever need to refinance or purchase a home just shoot me an email!!! [e-mail] Good luck!

Answer 3

a cash flow plan and a business plan are similar
a cashflow plan forecasts your intended income/expenditure
a business plan co-insides with cash flow.however, the b.p. takes it a step further because they are usually done on a five year basis with way points along the way
whereas c.f is usually done in 3 month increments for approx. a year at a time

YES THE BENEFITS OF A WRITTEN PLAN ARE THIS:
you can stick to it easier because it's always there
you remedy problems before they get out of hand
your best friend is your cheque book-balance it every purchase-every bank statement adjust the balance according to fees
keep an operating balance in mind on a weekly basis and don't go over it
eg: you earn $3000 p.w
you spend on fixed costs$2000 wages/stock etc.
operating balance from cheque to cheque $1000
maintain that and you're o.k. if you can't- juggle fixed costs or earn more

Answer 4

You have to know if you are earning a positive/negative cash flow on a monthly basis. This is a pretty good indicator if you are able to float or sink your business or personal life. Expenses keeps getting higher and things aren't cheap anymore. I had to do one while I owned a business and I did one when I sold it to show the buyer that he could make money if i sold it to him for the profit I was making. It's a pretty good tool to use if you know where you stand financially.

Answer 5

do you mean in a business plan?It shows you what you need to sell in order to break even among other things.It shows your investor what kind of profits you expect and that will help determine risk for that investor

Answer 6

What's up, just wanted to say, I liked this discussion. quite valuable replies

Answer 7

Haven't thought about it