Essential for the serene management of a company, the treasury plan Allows you to assess the good financial health of the company and to anticipate any budget problems.
In the form of a follow -up table, it is possible to confront the expected income and exit from the company in order to diagnose the state of its cash. This analysis is particularly important in the context of a Business Planalongside other tools such as The marketing plan.
Find out how to make a cash plan and download our monitoring table model for free in order to succeed in this crucial step.
What is a cash plan?
THE treasury plan consists in identifying all the disbursements (money outings) and the receipts (returned from money), generally over a period 12 months.
Objective of the cash plan : ensure the financial balance of the long -term company and anticipate possible Negative cash flows.
Indeed, your cash provisional can highlight disbursements above collection for a given month (due to a big bill to pay punctually, for example).
As part of a business creation, it is essential to identify these periods of difficulty and to propose solutions to remedy them: new sources of financing, increase in capital, etc.
More interesting, the cash provisional makes it possible to estimate The cumulative balancemonth after month, allowing you to put our time with offset periods.
Simplified example of a cash plan:
Your cash flow forecasts indicate a negative balance of – 1000 in April: bad news!
However, you plan a positive balance of 300 in January, 700 in February and 400 in March.
The poor performance of the month of April will therefore be offset (cumulative) by the previous months:
300 + 700 + 400 – 1000 = 400
The collection
Here are the main types of receipts to include in your cash plan to follow the cash flows of your business and control your budget:
- Forecast turnover (TTC);
- Capital contributions (whether it be the starting capital or capital increases);
- Contributions in current accounts (that is to say advances in funds carried out by partners);
- Loans;
- Refund of VAT;
- Grants.
The estimate of turnover is probably the most complex, especially in the case of the launch of a company: it is not enough to anticipate the amount of sales, it is also necessary to predict their payment period.
Disbursements
The disbursements are quite varied and we can list many kinds of different expenditure which will amputate the budget of your business:
- Purchases (TTC);
- Investments;
- General costs (rent, maintenance, communication, energy, etc.) TTC;
- Taxes and taxes;
- Salaries and social charges;
- Capital reductions;
- Recovery in current accounts;
- Borrowing reimbursements;
- Fees (lawyers, etc.)
Note: Purchases and sales must always be counted in TTC.
Treasury monitoring board model
To make your life easier and allow you to simply visualize your forecast, we have created for you a Treasury monitoring board model in Excel format.
Simply inform the starting balance in the first month as well as your receipts and disbursements: the totals and the cash flows of each month are then calculated automatically.
Enough to assess in the blink of the financial balance of your business in the coming year.
Why make a cash plan?
The cash plan is much more than a simple table of figures: it is a strategic tool to effectively manage the financial health of your business. It allows you to anticipate the variations in cash, avoid banking overdrafts and make informed decisions on spending, investment or financing.
Provide periods of financial tension
You can identify in advance the months when expenses exceed the revenues and adjust your actions accordingly (payment shift, financing search, etc.).
Secure your daily management
Visibility month a month on your financial flows makes it possible to anticipate unforeseen events and avoid unpleasant surprises, such as an unmanned negative balance.
Press your strategy with partners
Whether for a banker, an investor or a public organization, a clear and realistic cash plan strengthens your credibility and shows that you master your finances.
Manage your growth with method
During a development phase, it helps you measure the cash needs linked to hiring, investment or payment times of your customers.