The document discusses cash flow planning and management for businesses. It introduces cash flow planning software called "Up Your Cash Flow" that helps users understand and control cash flow. The software guides users through entering basic company information and financial data to develop cash flow, profit, and balance sheet forecasts. Comparing actual financial results to forecasts reveals discrepancies and allows users to identify issues impacting cash flow and profitability in order to make necessary changes. Developing comprehensive cash flow plans is important for businesses to know their cash needs and sources, and to avoid cash flow problems.

1. Cash Flow Planning:Cash Flow Planning:
How to Make More MoneyHow to Make More Money
andand
Ease Cash Flow StressEase Cash Flow Stress
Featuring “Up Your Cash Flow” businessFeaturing “Up Your Cash Flow” business
planning softwareplanning software

2. What we will Learn:What we will Learn:
Understanding and controlling cash flowUnderstanding and controlling cash flow
Bring your financials to lifeBring your financials to life
Using financial data to increase cash flowUsing financial data to increase cash flow
and profitand profit
Developing a cash flow and profit planDeveloping a cash flow and profit plan
How to use Up Your Cash Flow software toHow to use Up Your Cash Flow software to
plan and monitor the financial side of yourplan and monitor the financial side of your
businessbusiness

3. CASH FLOWCASH FLOW
What is it?

4. ““Cash flow is the secret to life”Cash flow is the secret to life”
-Dan Spilman - April, 1984

5. What is Cash Flow?What is Cash Flow?
The cash coming into the business
vs.
The cash going out of the business

6. What is Adequate Cash Flow?What is Adequate Cash Flow?
Adequate cash flow means there is
sufficient funds available from the
operations of the business or from
loans to meet the current
obligations of the business.

7. Consequences of InadequateConsequences of Inadequate
Cash FlowCash Flow
Loss of trade discounts
Dissatisfied suppliers
Inadequate inventory levels
Lost sales opportunities
Poor banking relations
Lost expansion opportunities
Loss of operating control
Bankruptcy

8. PlanningPlanning

9. ...Sun Tsu, about 600 B.C.

10. TranslationTranslation

11. Foretelling TriumphForetelling Triumph
Those who triumph, compute at
their headquarters a great
number of factors prior to a
challenge.
Those who are defeated compute
at their headquarters a small
number of factors prior to a
challenge.

12. Much computation brings
triumph.
Little computation brings defeat.
How much more so with no
computation at all!
By observing only this, I can see
triumph or defeat.

13. Bring Your Financials to LifeBring Your Financials to Life
. . . They must tell you a story. . . They must tell you a story

14. What’s WrongWhat’s Wrong
With ThisWith This
Statement?Statement?
It lists income and expense
without giving a clue as to
what is right, what is wrong
Numbers are a stagnant list
Most entrepreneurs will look
at the bottom line without
looking at what’s between top
and bottom
It doesn’t tell you a story
SALES $575,000
COST OF SALES 300,000
GROSS PROFIT 275,000
EXPENSES
Accounting 1,000
Advertising 25,000
Auto 5,000
Consulting 2,000
Depreciation 5,000
Interest 4,200
Payroll taxes 15,000
Promotion 5,000
Rent 2,800
Salaries – administrative 35,000
Salaries – office 19,000
Salaries – sales 45,500
Supplies 1,800
Telephone 5,500
Travel 5,500
TOTAL EXPENSES 177,300
NET INCOME $97,700
STATEMENT OF INCOME
For the Period Ended ________

15. Actual Planned Difference
SALES $575,000 $615,000 $(40,000)
COST OF SALES 300,000 320,000 20,000
GROSS PROFIT 275,000 295,000 (20,000)
EXPENSES
Accounting 1,000 1,500 500
Advertising 25,000 29,500 4,500
Auto 5,000 3,500 (1,500)
Consulting 2,000 2,500 500
Depreciation 5,000 5,000 –
Interest 4,200 4,200 –
Payroll taxes 15,000 10,000 (5,000)
Promotion 5,000 6,000 1,000
Rent 2,800 2,800 –
Salaries – administrative 35,000 32,000 (3,000)
Salaries – office 19,000 19,000 –
Salaries – sales 45,500 40,000 (5,500)
Supplies 1,800 2,000 200
Telephone 5,500 4,000 (1,500)
Travel 5,500 1,500 (4,000)
TOTAL EXPENSES 177,300 163,500 (13,800)
NET INCOME $97,700 $131,500 $(33,800)
STATEMENT OF INCOME
For the Period Ended ________

16. Actual Planned Difference
SALES $575,000 $615,000 $(40,000)
COST OF SALES 300,000 320,000 20,000
GROSS PROFIT 275,000 295,000 (20,000)
EXPENSES
Accounting 1,000 1,500 500
Advertising 25,000 29,500 4,500
Auto 5,000 3,500 (1,500)
Consulting 2,000 2,500 500
Depreciation 5,000 5,000 –
Interest 4,200 4,200 –
Payroll taxes 15,000 10,000 (5,000)
Promotion 5,000 6,000 1,000
Rent 2,800 2,800 –
Salaries – administrative 35,000 32,000 (3,000)
Salaries – office 19,000 19,000 –
Salaries – sales 45,500 40,000 (5,500)
Supplies 1,800 2,000 200
Telephone 5,500 4,000 (1,500)
Travel 5,500 1,500 (4,000)
TOTAL EXPENSES 177,300 163,500 (13,800)
NET INCOME $97,700 $131,500 $(33,800)
STATEMENT OF INCOME
For the Period Ended ________

17. Actual Planned Difference
SALES $575,000 $615,000 $(40,000)
COST OF SALES 300,000 320,000 20,000
GROSS PROFIT 275,000 295,000 (20,000)
EXPENSES
Accounting 1,000 1,500 500
Advertising 25,000 29,500 4,500
Auto 5,000 3,500 (1,500)
Consulting 2,000 2,500 500
Depreciation 5,000 5,000 –
Interest 4,200 4,200 –
Payroll taxes 15,000 10,000 (5,000)
Promotion 5,000 6,000 1,000
Rent 2,800 2,800 –
Salaries – administrative 35,000 32,000 (3,000)
Salaries – office 19,000 19,000 –
Salaries – sales 45,500 40,000 (5,500)
Supplies 1,800 2,000 200
Telephone 5,500 4,000 (1,500)
Travel 5,500 1,500 (4,000)
TOTAL EXPENSES 177,300 163,500 (13,800)
NET INCOME $97,700 $131,500 $(33,800)
STATEMENT OF INCOME
For the Period Ended ________

18. SALESSALES
COST OF SALESCOST OF SALES
EXPENSESEXPENSES
GROSS PROFITGROSS PROFIT
AccountingAccounting
AdvertisingAdvertising
AutoAuto
ConsultingConsulting
DeprDepr
InterInter
PayrPayr
PrPr
RentRent
Salaries – administrativeSalaries – administrative
Salaries – officeSalaries – office
Salaries – salesSalaries – sales
SuppliesSupplies
TT
TT
TT
ActualActual PlannedPlanned DifferenceDifference
$575,000$575,000 $615,000$615,000 $(40,000)$(40,000)
300,000300,000 320,000320,000 20,00020,000
275,000275,000 295,000295,000 (20,000)(20,000)
1,0001,000 1,5001,500 500500
25,00025,000 29,50029,500 4,5004,500
5,0005,000 3,5003,500 (1,500)(1,500)
2,0002,000 2,5002,500 500500
eciationeciation 5,0005,000 5,0005,000 ––
estest 4,2004,200 4,2004,200 ––
oll taxesoll taxes 15,00015,000 10,00010,000 (5,000)(5,000)
omotionomotion 5,0005,000 6,0006,000 1,0001,000
2,8002,800 2,8002,800 ––
35,00035,000 32,00032,000 (3,000)(3,000)
19,00019,000 19,00019,000 ––
45,50045,500 40,00040,000 (5,500)(5,500)
1,8001,800 2,0002,000 200200
elephoneelephone 5,5005,500 4,0004,000 (1,500)(1,500)
ravelravel 5,5005,500 1,5001,500 (4,000)(4,000)
OTOTALAL EXPENSESEXPENSES 177,300177,300 163,500163,500 (13,800)(13,800)
NET INCOMENET INCOME $97,700$97,700 $131,500$131,500 $(33,800$(33,800
))
STSTAATEMENT OF INCOMETEMENT OF INCOME
For the Period Ended ________For the Period Ended ________
ComparingComparing
how youhow you
actually doactually do
againstagainst
your planyour plan
tells youtells you
where youwhere you
are vs.are vs.
where youwhere you
want to bewant to be..

19. STATEMENT OF INCOMESTATEMENT OF INCOME
ActualActual PlannedPlanned DifferenceDifference
$575,000$575,000 $615,000$615,000 $(40,000)$(40,000)
300,000300,000 320,000320,000 20,00020,000
275,000275,000 295,000295,000 (20,000)(20,000)
1,0001,000 1,5001,500 500
25,00025,000 29,50029,500 4,5004,500
5,0005,000 3,5003,500 (1,500)(1,500)
2,0002,000 2,5002,500 500
5,0005,000 5,0005,000 –
4,2004,200 4,2004,200 –
15,00015,000 10,00010,000 (5,000)(5,000)
5,0005,000 6,0006,000 1,0001,000
2,8002,800 2,8002,800 –
35,00035,000 32,00032,000 (3,000)(3,000)
19,00019,000 19,00019,000 –
45,50045,500 40,00040,000 (5,500)(5,500)
1,8001,800 2,0002,000 200
SALESSALES
COST OF SALESCOST OF SALES
EXPENSESEXPENSES
GROSS PROFITGROSS PROFIT
5,5005,500 4,0004,000 (1,500)(1,500)
AutoAuto
DepreciationDepreciation
InterestInterest
Payroll taxesPayroll taxes
PromotionPromotion
SuppliesSupplies
TelephoneTelephone
AccountingAccounting
AdvertisingAdvertising
ConsultingConsulting
RentRent
Salaries – administrativeSalaries – administrative
Salaries – officeSalaries – office
Salaries – salesSalaries – sales
TravelTravel 5,5005,500 1,5001,500 (4,000)(4,000)
TOTALTOTAL EXPENSESEXPENSES 177,300177,300 163,500163,500 (13,800)(13,800)
NET INCOMENET INCOME $97,700$97,700 $131,500$131,500
$(33,800)$(33,800)
For the Period Ended ________For the Period Ended ________
Focus canFocus can
be placedbe placed
on areason areas
that maythat may
be hurtingbe hurting
cash flowcash flow
andand
profitabilityprofitability

20. Planning makes yourPlanning makes your
actual financial dataactual financial data
significantly more meaningfulsignificantly more meaningful
to the management ofto the management of
your business.your business.

21. What Happens When YouWhat Happens When You
Compare Your Plan vs.Compare Your Plan vs.
Your Actual?Your Actual?
• It tells you what went wrong versus what
went right
• It tells you how far you may be from
where you want to be
• It gives you the opportunity to find out . . .
• Why you are off the mark
• Where you are going
• What action must be taken to meet
financial goals

22. It tells you a story aboutIt tells you a story about
where your business iswhere your business is
headed, and if you don’theaded, and if you don’t
like what you see, itlike what you see, it
provides the opportunityprovides the opportunity
to change course.to change course.
What Happens When You CompareWhat Happens When You Compare
Your Plan vs. Your Actual?Your Plan vs. Your Actual?

23. Developing YourDeveloping Your
Cash Management PlanCash Management Plan

24. What Is a CashWhat Is a Cash
Management Plan?Management Plan?
How much cash will I need?
When will I need it?
Where will I get it?
Typically, to the business owner,Typically, to the business owner,
cash management means knowingcash management means knowing
in advance:in advance:

25. How many of you have your next 12
months’ cash plan in operation?
How many of you know when you are
going to run out of cash, or when your cash
balances will drop to their lowest levels?
How many of you know how long your
present cash resources will last?
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

26. The Primary Elements of Your PlanThe Primary Elements of Your Plan
The Profit and Loss Plan
– Shows anticipated operations (income and expenses) overShows anticipated operations (income and expenses) over
the next 12 months or longerthe next 12 months or longer
The Cash Flow Plan
– Takes information from P&L plan, converts it into cashTakes information from P&L plan, converts it into cash
flow, answers basic questions of “Where will my cashflow, answers basic questions of “Where will my cash
go?” “How much will go there?” and “How long will mygo?” “How much will go there?” and “How long will my
cash last?”cash last?”
Forecasted Balance Sheets
– The forecasted balance sheet is the only way toThe forecasted balance sheet is the only way to
determine if the projected P&L and Cash Flow plans aredetermine if the projected P&L and Cash Flow plans are
reasonable.reasonable.

27. Use Your Computer to PlanUse Your Computer to Plan
and Monitor the Financial Sideand Monitor the Financial Side
of Your Business!of Your Business!

28. TM

29. Your Secret Weapon!Your Secret Weapon!
Your Ace in the Hole
Your Trusted Financial
Advisor

30. Up Your Cash Flow guidesUp Your Cash Flow guides
you through entering what youyou through entering what you
know about your business,know about your business,
and then, shows you what youand then, shows you what you
dont know about yourdont know about your
business...business...
What your future cash flow and
profit will look like.

31. First, basicFirst, basic
information aboutinformation about
the company isthe company is
entered:entered:
namename
beginning monthbeginning month
incorporated yes/noincorporated yes/no
year of forecastyear of forecast

32. Then, beginningThen, beginning
balancebalance
informationinformation
regarding theregarding the
company’scompany’s
assets andassets and
liabilities isliabilities is
enteredentered

33. Then, sales data is enteredThen, sales data is entered
into Up Your Cash Flow...into Up Your Cash Flow...

34. First annualFirst annual
salessales
Then monthly
sales

35. Then anThen an
assumptionassumption
is entered foris entered for
the patternthe pattern
used toused to
collectcollect
revenuerevenue

36. Then, information regardingThen, information regarding
Cost of Goods Sold is input.Cost of Goods Sold is input.
There are various options...There are various options...

37. Option 1:Option 1:
As a % of salesAs a % of sales
Option 2:Option 2:
Fixed and variableFixed and variable
amountsamounts

38. Option 3:Option 3:
In detail - cost ofIn detail - cost of
goods broken intogoods broken into
•materialmaterial
•direct labordirect labor
•depreciationdepreciation
•payroll taxespayroll taxes
•overheadoverhead
Overhead can beOverhead can be
forecast with 14forecast with 14
user-definableuser-definable
accountsaccounts

39. Sales and Cost of Goods SoldSales and Cost of Goods Sold
can also be forecasted bycan also be forecasted by
product or product line...product or product line...

40. Here sales andHere sales and
cost of goodscost of goods
are convertedare converted
to a dollarto a dollar
amount byamount by
forecastingforecasting
unit price andunit price and
quantity soldquantity sold

41. Once Cost of Goods has beenOnce Cost of Goods has been
forecast, it is time to focus onforecast, it is time to focus on
the operating expenses...the operating expenses...

42. First a basicFirst a basic
paymentpayment
assumption isassumption is
created as tocreated as to
how you will payhow you will pay
the coststhe costs
incurred for yourincurred for your
expensesexpenses
However, a custom paymentHowever, a custom payment
assumption can be made for anassumption can be made for an
expense that is an exception to theexpense that is an exception to the
basic assumptionbasic assumption

43. Then you choose:Then you choose:
•Start up expensesStart up expenses
•Selling expenses orSelling expenses or
•G & A expensesG & A expenses
Then an expenseThen an expense
to forecast isto forecast is
chosen. There arechosen. There are
tons of user-tons of user-
definable expensedefinable expense
accounts toaccounts to
choose from.choose from.

44. An expenseAn expense
may bemay be
forecast as :forecast as :
•an estimate or anan estimate or an
adjustment to lastadjustment to last
year’s amountyear’s amount
•a % of salesa % of sales
•a fixed monthlya fixed monthly
amountamount

45. After the basic financial data is input inAfter the basic financial data is input in
UYCF, your future financial itinerary mayUYCF, your future financial itinerary may
now be looked at...now you can seenow be looked at...now you can see
The plan that will:
help you monitor where your cash is going and
identify problem areas
help you maintain sufficient cash balances
provide the ability to manage your business from a
proactive rather than a reactive mind-set
help you increase cash flow and profit
HELP YOU MAKE MORE MONEY....and
EASE STRESS

46. Now you can see what your future accountNow you can see what your future account
balances will look like andbalances will look like and planplan accordinglyaccordingly
Your Future Financial ItineraryYour Future Financial Itinerary
Future Balance SheetsFuture Balance Sheets

47. Your Future Financial ItineraryYour Future Financial Itinerary
Now youNow you
can see howcan see how
operationsoperations
will impactwill impact
profitabilityprofitability
and be ableand be able
to maketo make
adjustmentsadjustments
to get toto get to
where youwhere you
want to bewant to be
Future Profit & LossFuture Profit & Loss

48. Your Future Financial ItineraryYour Future Financial Itinerary
Now you canNow you can
see howsee how
operationsoperations
will impactwill impact
cash flow andcash flow and
be able tobe able to
resolveresolve
problemsproblems
before theybefore they
occuroccur
Future Cash FlowFuture Cash Flow

49. Use theUse the
comparitivecomparitive
forecast vs.forecast vs.
actualactual
sectionssections
each montheach month
to montitorto montitor
how you arehow you are
doingdoing
compared tocompared to
where youwhere you
want to bewant to be

50. This is your tool that willThis is your tool that will
enable you to get behind theenable you to get behind the
numbers every month to seenumbers every month to see
what went right and what wentwhat went right and what went
wrong.....wrong.....

51. By using Up Your Cash FlowBy using Up Your Cash Flow
your financials will come to lifeyour financials will come to life
and tell you a story that will helpand tell you a story that will help
increase your cash flow andincrease your cash flow and
profitability.profitability.

52. This is your tool that willThis is your tool that will
empower you every month toempower you every month to
ask the question...ask the question...
“What happened?”

53. This is your tool that willThis is your tool that will
always let you know...always let you know...
How long your cash will
last and when you will
need more.

54. Once you knowOnce you know
what happened,what happened,
and how long yourand how long your
cash will last...cash will last...
You can figure out......You can figure out......

55. How to:How to:
Make More MoneyMake More Money...and...and
Ease Cash Flow Stress!Ease Cash Flow Stress!