Cash Flow Forecasting - Introduction and Overview

Martus’ Cash Flow Forecasting module predicts the impact of a budget on cash flow and on your balance sheet.  The Cash Flow Forecasting module provides for a Projected Balance Sheet – based on a budget –  along with a Cash Flow Forecast that is derived from and ties to that balance sheet.

Our approach is based on this:

• Every budget item has an impact on a balance sheet account. What we call “amortization schedule” determines the amortization of each budgeted item away from the balance sheet account it has increased.
• In the most straightforward examples: budgeted sales increase Accounts Receivable, which is are decreased over time by the projected timing of receipts, while budgeted expenses increase Accounts Payable, which is decreased over time by the projected timing of payments.

Martus makes it easy to define the default balance sheet impact of each budget line, so ordinary end-users don’t have to be concerned about this.  At the same time, Admin users from the finance team can apply very granular overrides to specify the balance sheet and cash flow impact of individual budget lines. Martus also provides a method to use Global SPWs to define the complex balance sheet and cash flow impact of items such as prepaid expenses, loan payments, and deferred revenue.

The Cash Flow Forecasting module also includes extensive reporting on the cash flow and balance sheet impact of each budget line so that you can fully trace and confirm the impact of what you’ve budgeted.

Cash Flow Forecasting is part of the Premium subscription level.