Cash Flow Assumptions

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Cash flow represents the money coming in and going out of your business. Managing cash flow is one of the most important aspects of the business. In the planning phase, your cash flow estimates can help you decide whether your business idea is viable. The cashflow assumptions page lets you set and update a few basic assumptions about when you pay and get paid. You'll see the results of these settings in your Cash Flow table.

Accounts Receivable and Accounts Payable

Accounts receivable are also sometimes known as incoming payments or A/R. When you make sales to your customers on credit, you'll need to set up Accounts receivable in your forecast. Accounts payable, on the other hand, is sometimes also referred to as outgoing payments or A/P. When you make purchases from your suppliers to run your business, if you pay for any of them on credit, you'll need to set up Accounts payable in your forecast.

For details on how to manage these settings, read Adding Accounts Receivable and Accounts Payable to your forecast.


If your business will manage inventory, turning on this setting will automatically build inventory usage and reorders into your cash flow. For details on how to add inventory to your forecast, read Adding and Managing Inventory.

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