A cashflow budget is a very important tool for managing a business.
You can read more about a cashflow budget by clicking
This page provides an activity and instructions on how to complete
|You will need to download and save the activity.
Click on the icon on the right.
Work out the Total Income for each month (see coloured circles
in picture below). Enter a SUM function in cell C12 that provides
a total of cells C5 to C11 inclusive. [The formula will be =sum(C5:C11)].
Then copy the formula in cell C12 across to D12, E12, F12, and G12.
Work out the Total Expenditure for each month (see coloured circles
in picture below). Enter a SUM function in cell C28 that provides
a total of cells C14 to C28 inclusive. [The formula will be =sum(C14:C27)].
Then copy the formula in cell C28 across to D28, E28, F28, and G28.
Workout the closing balance for January. You will
need to enter a simple formula in cell C30. The formula will be
=C3+C12+C28. Do not forget to hit the Enter key after you have typed
This formula is Opening Balance + Total Income - Total
When you have entered the formula into cell C30 copy
it across to cells D30, E30, F30 and G30.
The final step is to enter formulae for the opening
balance. This is the simplest formula of all. The formula for the
opening balance for February is =C30
In effect, this formula simply makes the opening balance
for February the same as the closing balance for January. Take a
look at the red circles in the picture below. The formula for March
opening balance is =D30, that is the opening balance for March will
be the same figure for the closing balance for February.