The peak and valleys might be beautiful in the original setting of the world, but they are terrifying on the cash flow statements showing lumps and bumps. The worst-case scenarios happen when the businesses don’t see them coming earlier when they could save some of the retained earnings to blow out the cash crunch. However, with the assistance of the QuickBooks Online Forecasting Tool, you can have actual cash flow reports projected to plan out the coming crisis in a better way. More information on the topic is followed below in the blog. Read it until the end.
Forecasting budget in QuickBooks, with the help of the mentioned tool, is a process that will require you to seek help from your accountant or a professional. In case if you lack the former help, call on +1- 855 738 2784 anytime and get immediate assistance from a expert on the line
What is QuickBooks cash flow forecasting tool?
As we have already stated, the mentioned tool can be used in QuickBooks for forecasting and budget management in an automated and full-proof manner. A couple of things that should be kept in mind while forecasting the reports are to not confuse the cash flow with the company’s revenue. The latter is a part of the former and should be considered as two different terms. Accumulate the figures of your payments and receptions, and crunch them up with scenarios to come up with a useful forecast. However, the option isn’t available on the QuickBooks Online platform as of yet. Many users tend to use third-party web applications to forecast the cash flow reports. Applications like Float present a good overall result for the users who want to utilize the feature in QuickBooks Online.
What are the two methods to monitor the cash flow forecasting in QuickBooks?
There are two methods to monitor the QuickBooks Forecast Budget Report. Here are them.
- Direct cash flow forecasting: The method can be used to address the liquidity management for a short term. It shows the cash flow of your company at specified dates in the near future. You can run the forecast by entering payments occurring on a specific time of the year and combine it with a time frame which shouldn’t be more than 90 days.
- Indirect cash flow forecasting: This method is used at the beginning of the planning stages of a financial year, that is, near the end of the last fiscal year. It involves a number of accounting reports like balance sheets, income statements, etc. to project the cash flow.
How to Forecast in QuickBooks Online?
As we have mentioned in the above section, the tool isn’t available, however, you can use third-party apps or a little help from your accountant to get a forecast on an Excel sheet. For the latter option, you may need to run the Statement of Cash Flows report. Here’s how you can do that.
- Open your QuickBooks Online and go to the Reports section from the left menu.
- Under the Search field, type Statement of Cash Flows and press Enter.
- Click on the result showing Statement of Cash Flows to open the report and if you need to make changes on the settings of the report, click on Customize.
- At last, click on Run Report.
Before ending our blog on the QuickBooks Online Forecasting Tool, we wish that you have got the answers for your queries and have also found appropriate solutions for your issues as well from reading this post. However, if you have any further questions on the tool or any error that isn’t discussed here, dial the toll-free number +1- 855 738 2784 and get them solved out anytime.