Cash flow forecast
Last updated on December 14, 2021
Creating a Cash Flow Forecast
Creating the flow
Once back on the gini web app, go to "Dashboard". Click "Create Flow" in the "Create a Cash Flow Forecast" card to begin. If you want to see a screen recording of this process, click here.
If you have connected multiple organisations, you can see all of them listed below and can create a flow for each of them. Click "Create Flow" to start the Forecast.
Viewing the flow
Go back to your dashboard, your Cash Flow Forecast(s) will be under "My Flows".
To view your forecast, click the ↗ icon to view the flow output in a Google Sheet.
Your Cash flow forecast should look something like this.
Analysing your Cash Flow Forecast
To view your cashflow forecast, go to your "Dashboard". Under "Flows", you will see the forecast(s) listed there. Click the ↗ icon to view the flow output in a Google Sheet.
What You Will See
You will see your current month's Xero data and a forecast of your Cash InFlow, Outflow and Cash Balance for the next 6 months. This will be represented by a table and by 2 graphs.
Understanding the data
How is it calculated?
This is the formula for your Cash Balance each month
Your Closing Balance = "Starting Balance" ($ 40,828.55) + "Net Cash Flow" ($ 5,681.64) = ($ 46,510.19)
Your Starting Balance for the next month is your Closing Balance for the previous month.
Using your Cash Flow Forecast
Long Term Forecasting
gini uses Machine Learning and your historical Xero data to give you a 6-month forecast of your Cash Flow and Cash Balance.
A Drill Down Examination
As you can see from the graph above, Net Cash Flow is negative for the months Jan and Apr 2022.
Drilling down, we can see the following data.
For Jan 2022, what is worrying is our operational Cash Flow, as gini predicts it to be only $252.13, whilst sales will be $47,016.01.
This is the importance of the Cash Flow Forecast, it predicts we will have a Revenue of $47,016.01 but in the end, we will only keep $252.13. The Cash Flow forecast can tell us what to check for and it is up to us to pivot from this warning.
The Negative Cash Flow of $3,268.23 in Apr 2022 is another red flag even when the Sales prediction is $44,584. This is how our Cash Flow Forecast can help. With gini, you will be able to predict Cash Inflows and Outflows. The main rows to pay attention are the "Cash Flow (Net Cash Flow)" and "Cash & Cash Equivalents (Closing Balance)". If you see a downward trend, you can get ahead of it now and avoid any negative impacts on your Cash Balance.
Sharing the report
To share your Xero Cash Flow Forecast, click "Share" on the top right of the Google Sheet.
A pop-up box will appear, add the email addresses of the people with whom you want to share this report.
Remember to assign the relevant rights to each stakeholder. Select from either Viewer, Commenter or Editor.
After that, click "Send". And that's it.
You can edit the access right or remove someone's access. After clicking share, click on the name of the person whose rights you wish to edit. A pop-out window will appear. Make your amendments.
When you have made all the changes, click "Save".
Refreshing the report
It is simple to refresh the data of your Cash Flow Forecast. Return to your "Dashboard". Under "Flows", you will see the forecast(s) listed there.
Click the refresh icon. Every time you do, anyone with access to your Cash Flow Forecast will be able to see the updated version. There will be no need to share the Forecast again.