A Cash Flow Lesson

by Tim Berry

My Friday video this week is me (well, my voice; I don’t appear) offering a visual demonstration of a critical cash flow lesson. This first very nicely with my theme of business plan financials in the last week or two. It shows how much business-to-business sales, sales on account, and waiting for customers to pay... Read More »

Business Plan Financials: Tips and Traps

by Tim Berry

This is the latest post in my series on standard business plan financials. I’ve already written about the three essential projections, and how to do each, plus posts on standard vocabulary, timeframes, and so on. This one covers some common misunderstandings and errors that occur. The area of financial analysis is one in which definitions matter... Read More »

Business Plan Financials: How Many Months and Years

by Tim Berry

Do complete business plan financials include three years of monthly financial projections? Five years? One year? Obviously the answer to this frequently asked business plan financials question depends on the specific context. Sometimes specific organizations, business plan readers, require some specific timeframe. The Small Business Administration (SBA), for example, requires at least 12 months of... Read More »

Business Plan Financials: Cash vs. Accrual Bookkeeping

by Tim Berry

I hate the buzzwords and general environment related to accounting and financial terms. No wonder business owners shy away from it. “Accrual accounting” sounds like something you do with thumb screws, rack, and chains. But – damn – it matters. If you run a business, you have huge incentive to understand this stuff. And there... Read More »

Standard Business Plan Cash Flow: LivePlan

by Tim Berry

Most of my series on standard business plan financials is generic, meaning that it is about concepts, not business planning software. Of course I’m biased about business plan software, because I believe in LivePlan as the best available solution. I try to keep that out of most of my posts. However, when we look seriously... Read More »

Standard Business Plan Financials: How to Project Cash Flow

by Tim Berry

No matter what your business planning objectives, cash flow is still the most vital resource in the business, and managing cash is the single most important business function. Without cash, you go under. So I always assume cash flow is included in every kind of real business plan. And it is the most important component... Read More »

Standard Business Plan Financials: Important Cash Flow Vocabulary

by Tim Berry

As I continue with my series on standard business plan financials, I want to look at the basic cash flow These words put some people off because they sound like accounting and financial analysis. But they’re good terms to know, especially if you’re running a business. This is important cash flow vocabulary. Cash in business... Read More »

Standard Business Plan Financials: Keep the Balance Simple

by Tim Berry

In standard business plan financials, the balance sheet is a projection, not a recounting of actual money. It links to projected Profit and Loss to help project cash flow. It’s the most important example of the difference between planning and accounting.  In accounting, the Balance Sheet statement has exact details broken into categories and sub... Read More »

Standard Business Plan Financials: Projected Balance

by Tim Berry

This is another in a series of posts on standard business plan financials, continuing from last week. “Think of it as your business dashboard, providing a snapshot of the financial health of your company at a specific moment in time. The purpose is simple: balance sheets list assets, liabilities and owner equity, typically in order... Read More »

Standard Business Plan Financials: Projected Profit and Loss

by Tim Berry

Continuing with my series here on standard business plan financials, all taken from my Lean Business Planning site, the Profit and Loss, also called Income Statement, is probably the most standard of all financial statements. And the projected profit and loss, or projected income (or pro-forma profit and loss or pro-forma income) is also the most... Read More »