How to monitor my financial plan in the cash projections alongside the critical timing report?

Nori -

(This article is Xero users only)

A realistic cash flow forecast is vital for all businesses, but it is generally very time-consuming work. CaFE can create a realistic cash flow forecast in very simple steps with few inputs, and it can be monitored in real-time without any extra inputs!

If you already have your financial plan in CaFE, you will promptly see the realistic cash flow forest. Just click here for the instruction.

If you have no financial plan yet, please follow the instructions below.

 

[Creating your financial plan]

(if you have already created one, just skip this part)

In this step, a monthly cash flow plan is created for the next 3, 6 or 12 months with automated simple steps.

  • Just go to Reporting -> Financial Plan, then click "Create a new plan" button.

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  • Please input basic information in the following screen. If you have already created a budget in Xero, you may import it. Or you can create a new budget based on your past actual data. You may find more detail explanations by clicking a question mark.

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  • Then your draft financial plan, which consists of BS, PL and Cash Flow Plan, will be created by CaFE automatically based on your basic information.

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  • You can update the BS and PL budget, and cash flow plan in the edit screen.

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  • The due date of cash flows for each item can be set in the following screens, which appear when the gear icon on Cash Flow is clicked.

  • Please click "Recalculate Plan" to reflect the change. Then authorise it, with above "Authorise" button.

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[Monitoring your financial plan]

1. Select your plan to be monitored

In the Financial Plan List, select any financial plan, which you want to monitor in the Cash Projections and Critical Timing Report.

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Multiple financial plans can be monitored as the same time, as long as there is no overlapping period among them. 

 

2. Monitor the plan(s) on the Critical Timing Report

Go to Reporting -> Future Critical Timing, then click "Recalculate Projection" button. Then planned cash flows will be reflected in the report.

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The cash flows from the financial plan(s) are shown with "Planned" status.

Planned cash flow amounts will be automatically adjusted by cash flow forecasts, which are already issued in the month. For example, if you have 120 GBP cash flow in July 2019 for Entertainment in your financial plan, and you have already spent 24 GBP (cash flow forecast) in the month, then remaining 96 GBP will be shown up as a planned cash flow in July 2019. 

Planned cash flows will be generated each month. For example, even if you still have the remaining 96 GBP for Entertainment in July 2019, new cash flow with a full planned amount (120 GBP) will be created on 1st August 2019. The gap for July can be seen in the financial plan screen.

The due date for the "Planned" cash flow will be decided based on the Due Timing setting in the Cash Flow Setting in the Financial Plan. However, if the date is already passed, then today's date will be set. You can adjust the due date of each cash flow manually.

You can stop monitoring remaining amounts or stop monitoring all cash flows per cash flow item if you don't want to monitor any cash flows on the item any longer. Please see here.

 

[Changing how you monitor the plan]

1. Stop monitoring financial plan(s)

Simply uncheck the financial plan on the Financial Plan List, then click "Recalculate Projection". You can set monitoring Financial Plan again, whenever you want.

 

2. Adjust due dates

  • Click the small triangle on the left column in the Planned cash flow which you want to edit, then click the "Change Date" button.

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  • Simply select the date, then save.

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  • If you want to update the date of future cash flows for the same item too, check "Apply the...". In this case, the value date of all future cash flows also will be updated based on the selection. If you prefer the end of each month, then select "The last".

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  • When necessary changes are updated, please click "Recalculate Projection" button to refresh the critical timing report.

 

3. Change the monitoring option for each cash flow

  • If you do not want to see the remaining cash flow amount, please click "Stop Gap Tracking" button. Please note that the remaining cash flow amount for the item will not be monitored for the upcoming future cash flows too.

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  • If you do not want to monitor certain cash flow item, please click "Stop Monitoring" button. Please note that the cash flow amount for the item will not be monitored for the upcoming future cash flows too.

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  • Those settings can be done in the Financial Plan screen as well.  Go to Report -> Financial Plan, then click the gear icon in the item which you want to update, then select the option. Please note that the settings will be shown only for the monitored financial plan(s).

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[Current limitations]

  • Contact is not available
  • Currently, splitting a Planned Cash Flow into multiple ones inside a month is not possible
  • Amount in a Planned Cash Flow cannot be manually adjusted. In order to do this, you need to copy the financial plan, adjust cash flow amount in the draft Cash Flow Plan, authorise it, then monitor it.

  

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