Hi guys, I am very new to this and trying to get my head around casflow forcast. Am I correct in thinking the items are added as net ? my study books are confusing me? if i do need to show Vat would I need a separate coloumn for each month? any pointers from you would be great Ben
And do you put expenses (in their cetain cats) as net
Confused dot com
-- Edited by Ben14 on Monday 10th of May 2010 07:38:58 PM
Cashflow forecasting seems a bit of an advanced topic and not something normally covered by bookkeepers.
What exactly are you studying?
Which books are you using?
Are you doing cashflows to FRS1 or IAS7 standards?
Unfortunately I'll only be of any use to you under FRS1.
This will be one of those posts where when I have more information you end up being pointed at the right book rather than getting a definitive answer as whole books get devoted to cashflows and a posting on here couldn't really do justice to anything more than a specific question.
And on that matter, on the one specific question that you did ask. Cashflows are shown net of VAT unless the VAT is irrecoverable.
Talk later,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Ah, depends what the cashflow is for. I am assuming it is a management tool (rather than an accounting exercise) in which case you are looking at money coming in and out of your bank. As such record these these gross but remember every quarter you will need to have an entry for your vat payment (or refund).
