How to elaborate a cash plan?

analyze the accurate cash (when & how much) commitments in order to know (when & how much) I should provide to minimize shortage or excess

The most professional to prepare Plan for cash which lead to balance between Cash Inflow & Cash Outflow so you have to make analysis for company status and kind of plan

1- Short term plan

2- Long term plan

 

also you have to make balance for fixed payment and how to finance

you have 3 ways to finance company activities

 

1- Self Finance

2- Debit and Loans Finance

3- Mix between Self Finance and Debits

it is also depends on short term or long term requirement of payment and Receivable of cash

 

1- For short term Cash plan after analysis company cycles as per below stages

a- Supply Raw Material and payment term has to be under receivable term as it is possible by make stress and good negotiation with supplier

b- Production operation which already has fixed payment required like wages, power for machine, maintenance and so.....

c- Sells and Receivable from customers which has to be match and comes before Suppliers within enough time to make balance

During all cycles

1- Purchasing Cycle

2- Production Cycle

3- Sells Cycle

you have to make match with

4- Cash cycle which has to interfere with above cycle and balance with your policy and way available to finance your activities 

As noted by distinguished professors, by knowing the volume of internal and external cash flow expected to occur during the period

The best Answer added by: Mohammed Qasem  Auditor 3 days ago

Through the work and analysis of the maturity scale (cash in and out) and then put the plan according to the goal to be achieved. Gratefully