3.14 Make a Cash Flow Forecast

1. Understand how to set cash flow targets in line with financial plans for your business

1.1

Prepare annual cash flow targets with set dates (usually monthly) in line with your business’ financial plans

1.2

Analyse trends (e.g. seasonal, sector or political changes) and evaluate how they might impact on cash flow at any point in the year

1.3

Calculate the money that is likely to be available at different times in a one year period

2. Understand how to set up systems to monitor cash flow forecasts for your business

2.1

Produce cash flow forecasts and calculate potential high and low cash flow rates

2.2

Choose and set up an effective system for monitoring cash flow for your business

3. Understand how to control income and expenditure shortfalls for your business

3.1

Assess how to control sources and uses of cash for your business in order to minimise potential cash shortfalls

3.2

Assess and calculate how failure to meet external targets, deadlines or legal requirements might affect cash flow or damage your business

3.3

Accurately forecast cash shortfalls and plan the actions that need to be taken to address them

Unit aim(s)

Details of the relationship between the unit and relevant national occupational standards (if appropriate)

• MN4 : Manage cash flow in your business

Details of the relationship between the unit and other standards or curricula (if appropriate)

Not applicable

Assessment requirements specified by a sector or regulatory body (if appropriate)

Assessment to be based on naturally occurring evidence or realistic work environment

Endorsement of the unit by a sector or other appropriate body (if required)

Supported by SFEDI

Location of the unit within the subject/sector classification system

Name of the organisation submitting the unit

OCR

Availability for use

To be used only by the following partners engaged in the SFEDI Framework project when developing Business Enterprise Qualifications

CMI, Edexcel, IAB, ILM, NOCN, OCR, VTCT