Project CashFlow
The Project cash flow statement is a financial planning tool used to track expenditure throughout a project and allow the PM to identify critical timing points with respect the to project payment cycle. Understanding these constraints helps the Project manager to plan invoicing schedules and overall procurement strategy.
Project Cashflow Statement
| Jan | Feb | Mar | Apr | May | Jun | |
|---|---|---|---|---|---|---|
| Cash Balance Brought Forward | $20,000 | $28,000 | $44,600 | $22,800 | -$1,100 | -$15,000 |
| Income | $20,000 | $35,000 | $16,000 | $5,000 | $5,000 | $20,000 |
| Total Cash Available | $40,000 | $63,000 | $60,600 | $27,800 | $3,900 | $5,000 |
| Expenses | ||||||
| Item 1 | $300 | $300 | $300 | $300 | $300 | $300 |
| Item 2 | $3,000 | $3,200 | $12,500 | $8,000 | $2,400 | $2,600 |
| Item 3 | $7,200 | $900 | $18,500 | $4,600 | $1,200 | $1,400 |
| Item 4 | $1,500 | $14,000 | $6,500 | $16,000 | $15,000 | $2,000 |
| Total Expenses | $1,500 | $14,000 | $6,500 | $16,000 | $15,000 | $2,000 |
| Closing Balance | $28,000 | $44,600 | $22,800 | -$1,100 | -$15,000 | -$1,300 |
For a better understanding of how to apply this in your projects see the financial modules & Tutorials of our Online Diploma of Project management.
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