Finamcial Management

Steps in preparing a Pro-forma Cash Flow Statement (Cash Flow
Statement)

There are nine steps in the pro-forma cash flow statement process. They are:

1. Estimate sales and
   fees-for-service.


2. Estimate your
   revenue received
   from Accounts
   Receivable.


3. Decide how much
   of your business
   will be for cash or
   thirty day terms.


4. Repeat the same
   process as 1–3
   only for expense
   items.


5. Accounts Payable
   planning is related
   closely to
   expected revenues.
   6. Enter the estimated
   total cash received and
   estimated total
   expenses on the Cash
   Flow Worksheet.
   7. Fill in all other
   estimated income and
   expense items on the
   Cash Flow
   Worksheet.
   8. Calculate the total
   Cash In and Cash
   Out for each month
   and enter the surplus
   or deficit on the
   Worksheet.
   9. Enter the opening
   Cash balance in the
   first month and
   carry this forward in
   each months
   calculation to arrive
   at the 'actual surplus
   or deficit'