Tuesday 26 April 2011

How to do cash flow and profit and loss

Cash Flow

Profit and loss

Taking the daily rate we would charge the projected cash sales are based on the number of days we would work. We think that in the initial stages of the business we wouldn't be able to work that many days due to the lack of knowledge people have about us and we would need time to build our profile as a company. To break even we need to make £13200 a month - based on a 16.5 day month each. Jan - 8 days, Feb - 10, March 12, April - 14, May 16 etc and build the profile over time. It would unfortunately mean a decrease in wages at the start but if it means getting the business off the ground it would be worth it. These obviously are estimates - we could get lots of work straight away and not have to worry about a loss.

How to keep cash flow healthy:




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