The Closing Balance is the amount of cash at the end of the The Opening Balance is the amount of cash at theīeginning of the month (1st day of month). Opening Balance (what you have in bank at the start) plus Total Income (what money comes in) minus Total Expenses (what money goes out) equals Closing Balance (what money you have left).Ĭlick to Enlarge above illustration of a cashflow budget January Opening Balance In easy English terms the calculation can be stated: These are the main components that enable a calculation that predicts what the Bank Balance will be at the end of each month. Look in the left column and you will see ' Opening Balance', ' Total Income', ' Total Expenses' and ' Closing Balance'. Salaries on the other hand is $3,000 every month, and since there are 12 months, the Total for the year is $36,000. Similarly, the Total for Athlete Development is $5,000 and this comes in two months, February ($3000) and April ($2000). If you look at Sponsorship, the total is $9,000 for the year, and this comes all in the month of April. It is important to note at the outset that the Total column is equal to the sum of all the months. There are 13 columns and the first column is a Year Total column. The illustration below sets out the typical format for a Cashflow Budget (click on image to enlarge).
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