📎NOTE: This guide looks at how Futrli calculates a cash flow. For more information on how to create a cash flow forecast in Futrli, use our guide, Create a cash flow forecast.
There are three factors that make up a cash flow forecast:
VAT/GST/sales tax due from historical data
Accounts receivable/payable (broken down into individual invoices in a 3 year cash flow with due invoices forecast)
Futrli then effectively acts as a calculator, building a cash flow based on those three factors.
Dealing with accounts payable / accounts receivable
In a 3 year cash flow with due invoices, the invoices tab lists every invoice that makes up the AP/AR. Overriding expected payment dates will reduce the AR/AP balances.
In a 3 year cash flow forecast, you'll need to pay off AR/AP balances. The easiest option is to use a freestyle prediction, and set out how much you'll pay off in each month.
For more information, use our guide, Pay off Accounts Receivable and/or Accounts Payable accounts in a forecast.