When a Forecast is toggled between Month End View and Total View, you may notice a significant difference in your graph. Here’s how to make these views work for your Dryrun Forecast:
Month End View
Month End View takes into consideration the starting balance for the month, the inflows and outflows of cash including Recurring expenses and payments, and one-time Payables and invoices in Receivables. This gives you a “big picture” view of each month as it happens, and helps to visualize your trajectory.
Total View provides only the variation in the month’s cash flow without showing the month start and month end totals. This view is great for spotting potential shortfalls at a glance and visualizing areas that require additional modification to improve.
As the example above shows, Regal Studios has adequate cash reserves in the business until March 2017, in which the expenses far exceed the invoices coming in.
Now, the company is still in the black if we refer back to the Month End View, losing $85K out of the overall $2.1M, but the business owner in this case needs to evaluate either what expenses are coming out of the business in March to ensure profitability, or they should be looking at increasing their sales pipeline early in the year to compensate for this slowdown.
In any case, Total View is a great way to see into your business’ future to visualize the coming months’ cash flow and have time to plan out responses and make big decisions.