Cash Flow and Profitability Analysis
from Investing Enhancing Systems, Inc.
Software to budget and monitor cash flow while maintaining profitability.
When you click on the Revenue
tab at the bottom of the workbook you get this worksheet. There is only one column of data required
on this worksheet, which has white cells. Customer names from the Orders
worksheet should now appear on the Revenue worksheet. In the days
column put in the number of days it will take between invoicing and actually
receiving the payment (cash). Even though your payment terms might be “net 30”
days, some of your customers may actually pay in 60 days. Some customers may
tell you that their payment terms are not 30 days, but something else, usually
longer. Some customers that are having cash flow problems may stretch their
terms to 90 or 120 days. You have to make your best estimate of how many days
after invoicing a particular customer will actually pay the invoice, based on
the customer’s payment history. This estimate (in days) goes into the days
column for each customer. The maximum number of days you can input in the
Revenue days column is 120.
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