There are 3 core financial reports that will make up the majority of your historical annual accounts and may be included in monthly or quarterly reports if you have an accountant, FD, or CFO preparing your data. They are the Profit & Loss, Balance Sheet and Operating Cash Flow Statement. These historical versions can be generated in Xero or QuickBooks Online.
A 3-way cash flow prediction is a future extension of these 3 core reports: the Profit & Loss, Balance Sheet and Operating Cash Flow Statement. Futrli has an accounting engine, just like your accounting package, and calculates the predicted “3-way cash flow forecast/projection/prediction” automatically for you.
The Profit & Loss
The Balance Sheet
The operating cash flow statement
You will need historical and future versions of the Profit & Loss, Balance Sheet and Cash Flow Statement if you are seeking investment or funding.
Note: when applying for government backed Covid-19 schemes this will also apply.
Cash flow only software will only generate a version of the cash flow statement. The Profit & Loss and Balance Sheet are not calculated due to their lack of accounting engine.
If you want to understand how to improve your business and be alerted to areas that you can grow or that need your attention, the only choice is automated prediction software such as Predict. It calculates your future business accurately, and as a bi-product will generate your 3-way cash flow prediction
You will never fall into the danger zone of making decisions or testing outcomes based upon out of date predicted information.
The point of Predict is about working out what the future would look like if a given set of assumptions were to take place, and then figuring out a game plan to deal with the situation.
As economic times become more uncertain, use Predict to explore general sales growth or decline, gaining or losing specific customers, taking on new product lines, buying new assets, or whatever is on your mind. Every prediction you create will flow through to your predicted Profit & Loss, Balance Sheet and Cash Flow.