How is my End of Month Cashflow Forecast calculated if I don't have receivables or payables?
How is my End of Month Cashflow Forecast calculated, if I don't have payables or receivables?
When your organisation has receivables and payables, we would normally use your receivables and payables due for payment for the rest of the month from when your update is occurring. BUT, when you don't have receivables and payables we take a different approach, but encourage you to start using your receivables and payables function in Xero as soon as you can.
Instead we use your cashflows from last month or the same month last year as the basis for the remainder of month cashflow forecast.
How do I choose whether I base my End of Month Cashflow Forecast on last month or the same time last year.
Your End of Month Cashflow Forecast update is accessed via the Main menu. When presented with the options.
1. Click 'Cashflow '.
2. When asked "Would you like to know if you have any unreconciled transactions?" click 'Yes'.
3. After receiving unreconciled transactions update, you will be presented with the Cashflow Forecast Menu.
4. Click 'End of Month Cashflow Forecast '.
5. Tania advises "The cash movements in this forecast, will be based on your invoices and bills".
6. When asked if you want to use a different estimate basis, say 'yes'.
7. When presented with the options, click 'I will tell you the amounts to use'.
8. Follow the prompts accordingly.
- Alexa will say "Before I get started, I can see that you currently don't have any payables, or receivables due in Xero. And this means, I will need to find another way to forecast your end of month cashflow forecast. Do you think this month's cashflows are similar to last month?"
- If you think your cashflows are similar to last month, say "Yes"
- If you do not think your cashflows are similar to last month say "No"
- Alexa will then say "Ok. Do you think your cashflow this month is similar to the same time last year?"
- If you think your cashflows are similar to last year, say "Yes"
- If you do not think your cashflows are similar to last year, say "No" and Tania will base your cashflows on the receivables and payables balance you have in Xero.