How Do I Monitor a Projected Cash Flow Statement?
The most precise method for monitoring a projected quarterly cash flow statement is to add 12 columns to the 5 that are already included in the statement. One additional column each quarter allows you to record actual cash flow entries each quarter. A year-to-date column for projected and actual totals allows the user to monitor year-to-date totals for receipts and expenses. An example of these additions is presented in Figure 5. The additions allow comparison of actual cash flow entries with projected amounts, which enable calculation of differences between them. This enables you to monitor the cash position of the operation throughout the upcoming year. However, a projected cash flow statement can be used without any of the three columns. The key point to remember is a projected cash flow statement can be tailored to fit the needs of each individual operation. It can be as simple or as complex as is needed to be workable and useful.
