Technology

Cashflow Budget

A cashflow budget is a very important tool for managing a business. You can read more about a cashflow budget by clicking here.

This page provides an activity and instructions on how to complete the activity,

You will need to download and save the activity.
Click on the icon on the right.

Instructions

Step 1:

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.

Step 2:

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.

Step 3:

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 the formula.

This formula is Opening Balance + Total Income - Total Expenditure.

When you have entered the formula into cell C30 copy it across to cells D30, E30, F30 and G30.

Step 4:

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.

 

 
 

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