Cashflow forecast

[FAB0]

Congratulations on an excellant and very useful site.

I am currently working on my cashflow forecast and plan in general and i'm having trouble with some of the jargon used. I would be grateful if you could explain the following directly - i am a member.

Re Cashflow forecast, what does the following mean exactly:

Chairs?
Accruals?
VAT to C & E?
Capital?
What's the difference between Sales by volume and Sales by value?
My proposed service will have different costs so how can i forecast (predict) what customers will buy in order for the forecast to be as accurate as possible, i.e, 20% may buy a certain product while 70% may buy another - and vice versa?

Many thanks

[Statler]

Hi,

No idea about 'Chairs', but 'VAT to C & E' is an abbreviation for 'VAT to Customs and Excise', ie import / export duty.

As for Capital and Accruals, you can find definitions at the following useful website:

http://www.financial-planning.uk.com/glossary/

Sales by volume is the number of products sold, whereas sales by value is the financial cost of the items.

It is often a good idea to do several cashflow forecasts, covering worst and best case scenarios. Then, when you start trading, you can compare reality to the predictions, and see how well/poorly your business is doing.

Lee

[FAB0]

Thank you.