Cash flow forecasting is a powerful personal money management tool, whose potential you should learn how to harness if you want to become financially secure. Personal finance planning is not only about tracking expenses or planning a workable budget. It's of equal importance to plan ahead, project future cash inflows and outflows, so that you can always be in the know of what to expect and make timely adjustments to avert a foreseeable financial crisis. Knowing how much money you spend each month and tracking your spending or saving activity within budgeted categories provide valuable personal finance knowledge that should be efficiently used while designing your cash flow model and building your cash flow projections. Being able to see how you'll do financially at some future point in time or how your cash balance will change based on projected revenues and expenditures will help you manage your personal finances better.

InEx Finance offers various tools for cash flow forecasting:

1. Events Calendar

This tool allows you to schedule one-time anticipated income or expenses, as well as create more complex repeated incoming or outgoing payments. When adding a new event, you can associate your income/expense template to it and select the desired occurrence frequency. Recurring events are more suited for regular cash flow into and out of your account (like salary, utility bills), while one-time events work best for irregular expenses (like gifts, one-time purchases). The system will automatically generate the operations from your events on the scheduled dates, and upon confirmation these operations will become regular transactions and then be applied against the corresponding resource balance.

The Events Calendar in InEx Finance allows you to create recurring events of any complex frequency, for instance: each second to last day of month or the second Monday of each month until a certain date. Moreover you can set the time and day of the event notification to be sent to your email address as a reminder of the upcoming financial operation. InEx Finance integrates with Google Calendar, which allows you to sync your event notifications.

2. Table and Chart Reports

InEx Finance offers a comprehensive range of reporting tools to help you analyze historical data and build viable models for cash flow forecasting. The reports aggregate and present your financial information in a clear and intuitive manner, which makes it easy for you to identify certain spending or saving patterns and spot any problematic areas. You can compare your total spending against revenues for any given period of time, analyze your actual vs. planned budget performance in any given category, view category trends and resource balance dynamics over a given time frame. All these reports will help you glean valuable information about your personal finances and provide a fairly good idea of what the next months might look like. This kind of knowledge will come in handy when forecasting your future cash flow.

The recently added Events Forecast report basically charts out your financial future. It gives you a clear understanding of how the balance of your resources will change over a certain time span (maximum 6 months) based on your scheduled events. It can be a fairly good estimation of your future financial standing provided that you include the majority of your projected income and expenses in the calendar. This report helps you identify any potential shortfalls in your resource balances in advance and evaluate the impact of an upcoming large purchase. It also gives you an idea of how much money you can reasonably put aside for your savings goals and whether you'll be able to reach them by the target date.

Published at January 12, 2013 12:31
Updated at January 12, 2013 12:31

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