Make sure you understand these general business terms related to cash flow.

Annual cash flow forecasts

Annual cash flow forecasts enable you to estimate whether you'll have sufficient cash to fund your debts over a period of time.

Goods and Services Tax (GST) provisions

Include GST when inserting amounts for some cash inflows (particularly sales) and many cash outflows (particularly purchases) into your cash-flow worksheet.

Remember! The GST attributes of each business will vary. Specific advice from your tax adviser is strongly recommended.

Money in

Money in results from the following:

• Sales: what you receive from selling your product or service.
• Owners' capital: money you, or your partners, invest in the business with the aim of making a profit.
• Loans: from financial institutions, such as banks, credit unions, or investors. In some cases the owners, shareholders, or proprietors of the business may also lend money to the business.

Money out

Money out results from the following.

• Stock: money you invest in products to resell or use in manufacturing.
• Operating expenses: money you spend to operate your business on a day-to-day basis, for example rent, power, and wages.
• Assets: fixtures, fittings, machinery, and vehicles.
• Repayments: payments made on loans that your business has received from banks, credit unions, owners, or other investors.
• Dividends or profit distribution: when you make a profit, you may choose to take some of your money out of the business.