Cashflow Forecasting and Software

Which financial statement is considered the most important?

What is the basic formula of the balance sheet?

What does the balance sheet help monitor?

Which statement is also referred to as a Profit and Loss Statement?

What is the primary focus of an income statement?

What is the formula for calculating profit or loss on an income statement?

Which financial statement is used to understand how to realize profit into cash?

Which of the following is a requirement for obtaining a loan from a bank when the amount requested is high?

What information may be necessary to successfully negotiate a line of credit with the bank?

Who can provide advice on the information required by banks for approving loans and a line of credit?

Which financial professional is required to adhere to certain professional standards and established accounting principles?

What should be considered when preparing a cashflow forecast?

What software should all payroll software be for use in?

When is the best time to negotiate for a line of credit with a bank?

Financial Statements

The balance sheet is considered the most important financial statement.
The basic formula of the balance sheet is: Assets = Liabilities + Equity.

Balance Sheet

The balance sheet helps monitor a company's financial position at a specific point in time.
It provides a snapshot of a company's assets, liabilities, and equity.

Income Statement

The income statement is also referred to as a Profit and Loss Statement.
The primary focus of an income statement is to show the revenues and expenses of a company over a specific period of time.
The formula for calculating profit or loss on an income statement is: Profit = Revenue - Total Expenses.

Cash Flow Statement

The cash flow statement is used to understand how to realize profit into cash.

Loan and Line of Credit

When requesting a high amount of loan from a bank, a business plan and financial statements are required.
Information necessary to successfully negotiate a line of credit with a bank includes: business plan, financial statements, and credit history.
An accountant can provide advice on the information required by banks for approving loans and a line of credit.

Financial Professional

An accountant is a financial professional required to adhere to certain professional standards and established accounting principles.

Cash Flow Forecast

When preparing a cashflow forecast, it is essential to consider: sales, accounts receivable, accounts payable, and capital expenditures.

Payroll Software

All payroll software should be compliant with relevant tax laws and regulations, such as STP (Single Touch Payroll).

Negotiating with Bank

The best time to negotiate for a line of credit with a bank is when the business is performing well financially.

Test your knowledge on cashflow forecasting and the use of computer software programs to assist in the process. Explore the importance of considering client payment history and learn how to monitor and update cashflow forecasts.