Planning is an integral part of the cash flow management process. It allows you to see the real financial situation at the enterprise, assess its solvency and make the necessary forecasts. One of the financial planning tools is the preparation of a payment calendar.
It is necessary
data on accounts payable and receivable
Instructions
Step 1
The payment calendar includes data on cash receipts to the company and its payments. Usually compiled on a quarterly basis, broken down into months or shorter periods. When using it, you need to track the status of production, inventory, receivables and payables. It represents a plan for the movement of money in the short term and is approved within the limits and capabilities of the enterprise.
Step 2
The first section of the calendar reflects expenses, i.e. all upcoming payments and transfers of funds, in the second - all expected receipts. It is necessary that there be equality between them, and at best, an excess of income over expenses. Its main goal is to avoid gaps between receipts and payments when the company lacks the necessary funds.
Step 3
Using the payment calendar allows you to identify financial errors, lack of funds, reserves. Helps to understand the reasons for the prevailing negative situations and determine measures to eliminate them. To draw up it, the following documents are required: product sales plan, production cost estimates, contracts, invoices, capital investment plan, payroll schedules, account statements of the organization with the corresponding annexes.
Step 4
The process of compiling a payment calendar consists of several stages. First, you need to choose a planning period. It can be a quarter, a month, a decade, or even a week. Secondly, the planned volume of sales is determined based on the volume of production in the selected period and changes in balances. Third, the amount of possible cash flows is calculated. Next, the expected costs are estimated and the balance is determined. It represents the difference between the amounts that will have to be received and the expenses in the period under review. As a result of summing up, a shortage or surplus of funds at the enterprise is revealed.
Step 5
The expected balance of income and expenses is compared with the available minimum safety stock of funds. If the value of the planned payments turns out to be more than the receipts, taking into account the balances on the accounts, then this may indicate a deterioration in the financial condition. Surplus testifies to the stable operation of the enterprise and its solvency.
Step 6
The payment calendar allows you to manage accounts payable and receivable, promptly receive information about cash flows, determine the need for a short-term loan and make it possible to avoid discrepancies in the time of payments and settlements.
