Btec Business Level 3 - D1 Accounting
D1 – Demet Sahin – Business Accounting
For this part of the task I have been asked to look at the case study of Superflex UK. Recommend and justify ways in which Superflex could address these problems and improve the cash position of the business.
A cash flow forecast is estimation of cash coming into the business and of cash going out of the business over a set period of time. A cash flow forecast should demonstrate that your business will have access to enough money to survive. But when estimating the costs you must give reasonable costs because if you estimate the expenses low and the profit high it will cause problems within the business.
The purpose of cash flow forecast is to help you see how much money you are going to make each month. You can also see how much is your expenses and your profit for the financial year.
Cash flow tells you all the revenues that flow into the business and all the expenses flowing out of the business. Expenses in this sense refers to the total costs of doing business including operating expenses for the cutting shop, capital expenses for buildings and machinery. Cash flow problems
Cash flow problems are responsible for causing over 70% of businesses to fail within their first year. As a result, it is the main reason for business failure. The main problem of the cash flow is that the company might have too many debtors, too many creditors or they might over invest. The result of these is that the company will lose money and face bankrupt.
Recommendations to the Cutting Shop
Accounting software
Accounting software will help the cutting shop to prepare a cashflow forecast, allowing them to update their projections if there 's a change in market trends or their business wealth. Planning for seasonal peaks and troughs is simplified and the cutting shop can also make "what if" calculations to help them prepare the cashflow.
The software includes a range of reporting tools that let companies present the information in
For this part of the task I have been asked to look at the case study of Superflex UK. Recommend and justify ways in which Superflex could address these problems and improve the cash position of the business.
A cash flow forecast is estimation of cash coming into the business and of cash going out of the business over a set period of time. A cash flow forecast should demonstrate that your business will have access to enough money to survive. But when estimating the costs you must give reasonable costs because if you estimate the expenses low and the profit high it will cause problems within the business.
The purpose of cash flow forecast is to help you see how much money you are going to make each month. You can also see how much is your expenses and your profit for the financial year.
Cash flow tells you all the revenues that flow into the business and all the expenses flowing out of the business. Expenses in this sense refers to the total costs of doing business including operating expenses for the cutting shop, capital expenses for buildings and machinery. Cash flow problems
Cash flow problems are responsible for causing over 70% of businesses to fail within their first year. As a result, it is the main reason for business failure. The main problem of the cash flow is that the company might have too many debtors, too many creditors or they might over invest. The result of these is that the company will lose money and face bankrupt.
Recommendations to the Cutting Shop
Accounting software
Accounting software will help the cutting shop to prepare a cashflow forecast, allowing them to update their projections if there 's a change in market trends or their business wealth. Planning for seasonal peaks and troughs is simplified and the cutting shop can also make "what if" calculations to help them prepare the cashflow.
The software includes a range of reporting tools that let companies present the information in