BTEC First Business Unit 2 - Finance for Business
I was going to retire these pages in July 2021, but having looked at Google Analytics it seems people still use them. There's probably a business lesson there about knowing your client base or something...
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
Budgets 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 line - quite literally.
Cash Flow Forecasting - slides with the theory
Calculating Cash Flow - slides with examples
Pippi's Balloons - Pippi's costs
Cash Flow Forecast Table - a large table for use with a full CFF task
Pippi's Cash Flow Forecast - Pippi's costs worked through
The BBC Bitesize site has some notes on cash flow which are worth a look. There's a video and test as well (although some of the questions get into ideas you don't really need to worry so much about for this course).