School Cash Flow Statements (continued)

School Cash Flow Statements

It is different to the school budget as this shows the school’s income and expenditure plan for the year.
 
The school may be forecasting a surplus for the year, but if grants aren’t received on time or people who owe the school money are slow to pay, then the school may not have sufficient funds to pay the current bills due for payment.
 
Tips for managing cash flow:
 
1.  Do not place orders that the school cannot afford.
2.  Monitor your bank account regularly (daily if required).
3.  Confirm payment terms with suppliers.
4.  Avoid printing cheques until funding has been received.
5.  Accurately forecast the timing of large items of expenditure (eg Capital).
6.  Pro-actively chase any overdue debtors.