Cash flow continues to be a significant source of anxiety for numerous small business proprietors. Uncertainty about future financial circumstances often leads to apprehension among clients, diverting valuable time and energy that could otherwise be allocated to enhancing revenue streams.
Overview of the cash planning tools
QuickBooks Online has two tools to help your clients with their
cash planning:
- Cash flow, which
enables clients to view prior cash flow and the projected cash flow for
the next 90 days, without any adjustments
- Planner, which
enables clients to add or adjust future transactions to explore how
different scenarios could affect future cash flow without affecting their
books
Both
tools are accessed by going to Dashboards from the left-hand navigation.
These instruments represent the exclusive location within QuickBooks Online where preexisting QuickBooks transactions and linked bank account information intersect with projected transactional data, all of which are presented through insightful visual representations. This affords the clientele a comprehensive overview of their monetary flux, enabling them to engage in well-informed business determinations.
Cash flow
The Cash flow tab allows clients to observe historical cash flow and forecasted cash flow for the upcoming 90 days, without any modifications. Similar to all data-driven predictions, the accuracy of the forecasts increases with the availability of more data; hence, linking your clients' business accounts to QuickBooks Online will enhance the accuracy of the forecasts made.
The Cash flow tab provides a comprehensive enumeration of the client's linked bank/credit card accounts along with their corresponding balances, encompassing overviews of both inflows and outflows of funds.
Planner
The activation of the Planner tab unveils the Cash flow planner tool,
providing clients with the capability to incorporate or modify upcoming
transactions in order to analyze the potential impact of various scenarios on
future cash flow without influencing financial records.
Utilizing historical transactions and linked bank account information, this tool presents a historical perspective on cash flow patterns. Subsequently, it furnishes clients with a forecasted outlook on cash flow by amalgamating past transactions with anticipated future transactions derived from previous financial activities.
Clients
can choose between two different viewing options for their cash flow:
In both
cases, below the cash flow projections are lists of all the data that
contribute to the forecast plots. This includes future invoices and expenses
already entered combined with events that QuickBooks Online predicts.
The Cash Flow Planner: A Comprehensive Guide to Financial Planning
The Cash flow planner workspace located within the Planner tab is a highly effective tool for individuals and their clients. It offers clients a secure environment to manipulate their financial figures, enabling them to visualize the potential impact of various decisions or activities on their cash flow through the addition and modification of upcoming transactions, all without impacting their financial records. This functionality aids clients in making well-informed choices regarding the timing of saving, spending, borrowing, and transferring funds.
The Cash
flow planner bases its forecasts on three types of transactions. These are:
- Planned money-in and money-out transactions that your client has added manually to the planner but that aren’t included in their regular accounting.
These are marked with a special icon as shown here: |  |
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