The Cashflow Sense Check gives you an idea, once the plan has been created, if there is or is not sufficient cash to achieve the plan.

If not, you can either help the client obtain funding - via debt or equity (see Funding Plan in the Clarity platform) - or revise the plan to fit the clients cash requirements.

Where the a positive 'Free available cash' balance is below 15,000 in your currency, or a figure you feel is more appropriate, it's recommended to complete a more detailed cash flow forecast. But explain this to the client first, raise the extra work order for approval and invoice for payment before starting the work.

Once a Financial Plan is created in the Clarity Platform you can then create a Cashflow Sense Check (a cash flow forecast).

The Cashflow Sense Check uses the data in the Financial Plan plus the relevant information from The 7 Key Numbers and 5 Levers of Success calculations to plot the movements of cash for that business.

For example, if improved cash days by 10 days then the improvement of those 10 days will be factored into the Cashflow Sense Check equally over the 12 month period.

Click the + icon next the 'Net cash movement'.

And it will reveal the fields that can be edited - those rows with an open padlock icon You can then enter the figures, in accordance with the row categories, as required.

Any cash going out needs to be entered as a negative figure.

The Cashflow Sense Check figures are net of sales tax (vat, gst etc). As a result, it will not include the regular vat/gst payments. It is assumed that the relevant vat/gst amounts will be kept in a separate bank account and paid when falling due.

However, as the balance sheet and cash balances at the start of the Cashflow Sense Check period will include vat/gst balances, you'll find the vat/gst amount included in the Cashflow Sense Check.

This figure is shown within the 'All historic taxes (paid)/repaid' row of the 'Net cash movement' - you can click the + icon to reveal it.

If required, you can edit this historical figure as detailed above in 'How to edit the Cashflow Sense Check'.

This is the same principle for the business tax that was historically due up to that point of creating the Financial Plan and Cashflow Sense Check - it will be included in the 'All historic taxes (paid)/repaid' row of the 'Net cash movement' - you can click the + icon to reveal it.

If required, you can edit this historical figure as detailed above in 'How to edit the Cashflow Sense Check'.

In addition, the amount of business tax, as per the Financial Plan, to deduct from the cash balance is included at the bottom of the Cashflow Sense Check.

Leaving the 'Free available cash' is the bank balance available to spend after saving for the business tax.