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BY HARRY COTTERELL
BUSINESS STUDIES STUDENT
GREAT WYRLEY HIGH SCHOOL

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Calculating Cash flow is really an estimation of how a business will do in coming months so they can make various cut backs or know that they can spend more before the time comes and this is why businesses should do them as it is a good way to ensure your business is doing well and ready for the up and coming months and so highlights the importance of cash flow forecasts.

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TOTAL OUTFLOWS: Add all outflows together.
TOTAL INFLOWS: Add all the inflows together.
TOTAL CASH AVAILABLE: Total inflows + Opening balance.
OPENING BALANCE: Rolled over from previous months closing balance
CLOSING BALANCE: Total cash available - Total outflows

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A businesses main priority however is to make a profit, and they do this through various different ways. a business always aims to have their Inflows amount to more than their Outflows this way they will be making a profit. the methods businesses use to make a profit are listed below.
- Revenue Sales
- Rent (Landlords)
- Credit Sales
- Bank Loan
- Mortgage
- Crowd- funding
These inflows are all funds that come into the business. maximizing things like credit sales and revenue sales means that the business will be making the most money possible which is always the aim.

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Every business has numerous costs that they must pay to keep the business from being involved firstly in a law suit and secondly so that they can receive produce or materials to manufacture their products with. Some of the costs they have to make are listed below.
- Rent
- Gas
- Electric
- Material Costs
- Wages
- Tax Bills
- Equipment
All of these costs have to be thought about by a business so that they can plan how to spread costs and stop themselves from going out of business

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Cash flow is the term used in business to describe a businesses outgoings (Known officially as an Outflow) to in goings (Known officially as Inflows) and finally calculate how much money a business has to spend at the end of a certain period of time (Usually a month)