Cash budget

The Cash Budget shows a calculation of deposits and payments, the monthly change in the cash flow and thus the calculated balance in the bank account at the end of the month.

The credit periods, account types and VAT settings you have made in the Chart of Accounts and Settings may affect the values in the Cash budget.

The amounts in the cash budget are affected by, among other things, the settings you have selected for credit periods, VAT and interest rates. You can specify the credit periods in the Settings > Credit periods in the left-hand menu. Here you get the full overview of your accounts and their credit periods and you can edit them. You can also edit credit periods by clicking on an account name. Remember, you can create extra lines for your account specification to make your cash budget calculation more detailed. In Settings you can also edit the VAT and interest rates.

VAT and the cash budget

Remember, if an account is subject to VAT, and the credit period is equal to 0, a budgeted turnover of 100,000 kr. in January will be shown as a deposit of 125,000 kr. in January with a corresponding VAT payment in either February or May (depending on whether VAT is settled monthly or quarterly).

Settling initial stock

If you are creating a Forecast, it is important that you settle your openings, most importantly for VAT, debtors and creditors. That is, in the Opening Balance Sheet you have to indicate when you expect to receive payments from your customers, and when you expect to pay your bills.

You now also have the option to run your initial stock balance automatically, so you no longer have to enter this manually. You can do this in Settings in the left-hand menu, where you can settle your VAT, creditors and debtors.

Quick guide to the cash budget