The peak and valleys may be beautiful in their original setting, but they are terrifying on cash flow statements that show lumps and bumps. Worst-case scenarios occur when businesses do not anticipate them and do not save some of their retained earnings to alleviate the cash crunch. Here you will read about what is QuickBooks online forecasting tool and if you want to know more about other features like the how-to guide for learning QuickBooks and how to fix com error crashes when mailing on outlook then click on these links.
However, with the help of the QuickBooks Online Forecasting Tool, you can have actual cash flow reports projected to better plan for the upcoming crisis. More information on the subject is provided in the blog below. Continue reading until the end.
What is QuickBooks cash flow forecasting tool?
A couple of things to keep in mind when forecasting reports are not to confuse cash flow with the company’s revenue. The latter is a subset of the former and should be treated as two distinct terms. Compile the figures from your payments and receipts and combine them with scenarios to create a useful forecast. However, the option is not currently available on the QuickBooks Online platform. Many users prefer to forecast cash flow reports using third-party web applications.
What are the two methods to monitor cash flow forecasting in QuickBooks?
There are two methods to monitor the QuickBooks Forecast Budget Report. Here are them.
- Direct cash flow forecasting: This method can be used to address short-term liquidity management. It depicts your company’s cash flow at specific dates in the near future. You can run the forecast by entering payments that occur at specific times of the year and combining them with a time frame that is no longer than 90 days.
How to Forecast in QuickBooks Online?
As we mentioned in the previous section, the tool is not available; however, you can get a forecast on an Excel sheet using third-party apps or with the assistance of your accountant. You may need to run the Statement of Cash Flows report for the latter option. Here’s how you can go about it.
- Open QuickBooks Online and navigate to the Reports section in the left menu.
- Type Statement of Cash Flows into the Search field and press Enter.
- Click on the result that shows Statement of Cash Flows to open the report, and then click Customize if you need to make changes to the report’s settings.
- Finally, press the Run Report button.
Before we conclude our blog on the QuickBooks Online Forecasting Tool, we hope that you have found answers to your questions and appropriate solutions to your problems after reading this post.
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