Boston House, That’s why forecasting your cash flow for the upcoming month or quarter is a good exercise to help you better understand how much cash you’ll have on hand then . '34a76f6e38ab182d418e3abcdac0c208', While both FCF and OCF give you a good idea of cash flow in a given period, that isn’t always what you need when it comes to planning for the future. Sub-contracted labour (other tradesmen) - £4,000 per month. Keeping track of cash flow into and out of your business means you have a more holistic understanding of your business’ financial health. In theory, cash flow isn’t very complicated—it’s a reflection of how money moves into and out of your business. Pay employees and independent contractors, and handle taxes easily. Can you afford to invest in that new software? All students preparing to sit A-Level Business exams in summer 2021. It is assumed that suppliers will allow Sophie & Jack 30 days to pay for these costs. e._q.push([t].concat(,0)))}} "$default_instance":e).toLowerCase() ;for(var u=0;u