That Blue Square Thing

BTEC First Business - Unit 2 - Finance

Budgeting and Cash Flow Forecasts

Learning Aim B2: Understand the tools businesses use to plan for success

Businesses need to budget to have a chance of controlling their costs and making sure that they make a profit. Once a budget has been estimated budgetary control can then be used to monitor progress and make adjustments as necessary

PDF iconBudgets and Budgetary Control - slides

Cash Flow Forecasting

A cash flow forecast can be used to identify money flowing in and out of a business over a period of time.

This can be crucial for businesses - they need to make sure they have enough money to pay next months wages and still buy materials to be able to produce more products to sell - to make more money. Getting the balance right can be tricky.

It's all about the bottom lime - quite literally.

PDF iconCash Flow Forecasting - slides with the theory

PDF iconCalculating Cash Flow - slides with examples

PDF iconPippi's Balloons - Pippi's costs

PDF iconCash Flow Forecast Table - a large table for use with a full CFF task

PDF iconPippi's Cash Flow Forecast - Pippi's costs worked through

The BBC Bitesize site has some notes on the breakeven chart and formula which are worth a look. There's a helpful test as well (although some of the questions get into ideas you don't really need to worry so much about for this course).