You're on the United Kingdom site →

Log in

How Do I Calculate How Much Cash Is Coming In?

Getting a strong handle on how much cash is coming into your business is essential to making informed decisions for your business.

Right now, it can be hard to predict what money is going to come into your business and when. The current situation is constantly changing and the uncertainty is inevitably causing many business owners some sleepless nights.

However, if you can give yourself a detailed view of what cash you’re expecting in – whether from sales, government support, grants or loans – you can rest a little easier in the knowledge you can meet all of your outgoing commitments such as wages and bills.

A cash flow forecast is the best way to predict what money is coming into your business. Using a cash flow forecast to track inflows and outflows of cash to your business, you can take a detailed view of your business finances over the coming days, weeks and months.

Nothing is certain at the moment, and that’s why Float cash flow forecasting software gives you flexibility in inputting data to your cash flow. While Float syncs one-way with platforms like Xero and QuickBooks to pull through data on invoices due, and you can update this information with expected payments and predicted sales. After all, you know your business better than anyone.

In Float, you can set an expected payment date for invoices, rather than the due date in your accounting software. This allows you to see exactly when the money will hit your accounts and therefore gives you a real-time picture of fluctuations in your cash position. This is a particularly useful feature if you know for certain some invoices will come in late, whether from a client that always pays you late or a planned payment delay to support an important client through their own cash flow issues.

Coronavirus Business Interruption Loan Scheme

Another powerful feature to try out is scenario planning. Since the pandemic is throwing curveball after curveball, you’ll want to be able to model different possible scenarios to understand how they could impact your business’s cash flow. For example, you may want to look at the impact of being forced to close your business for 3 weeks and losing that vital income. With your income drastically reduced, will you still be able to pay your wages and bills? Will you be able to pay yourself? What about if you have to let go of some staff, how much will that impact the bottom line? Scenario planning can help you answer the big ‘what ifs’ and help you prepare and bumps in the road ahead.

Free Download! The Advanced Guide to Cash Flow

Get our top tips on how to forecast your cash to make better decisions for your business.

(By adding your email, you agree to receive future relevant emails. Opt-out at any time.)

Calculating cash flow based on inflows and outflows may seem simple but there a lot of variables. We all know that working out how much cash is coming in in a spreadsheet can be time-consuming and prone to errors. That’s why we created Float – to make cash flow forecasting simple, fast and empowering. And to help businesses like yours get through even the most difficult of times.

Try Float today and get more insight into what cash is coming into your business – it’s one less thing you’ll have to worry about.

Further reading:

How Can I Predict Cash Gaps?

Louise Bayley-Boyd

Content Manager and digital enthusiast, fuelled by coffee and horror films.