To help users picture their cash flow along a future timeline, every Dryrun account has been upgraded to include two distinct scenarios: Cash Flow and Sales.
Cash Flow is a term we use to refer to your present cash incoming and outgoing actions and are therefore fairly concrete and near term.
Sales is a term we use to refer to hypothetical incoming revenue. Your sales pipeline maps further into the future and is, therefore, more speculative and less concrete.
Both scenarios continue to map cash in and out of your business.
Input data into both scenarios manually or via our supported integrations.
Category labels to help determine which items should be placed in which category. They've been renamed as follows:
Cash Flow Scenario has categories named 'Recurring', 'Cash In' (formerly 'Receivables'), and 'Cash Out' (formerly 'Payables').
Sales Scenario has categories named 'Recurring', 'Sales’ (formerly 'Receivables'), and 'Costs' (formerly 'Payables').
All categories function the same as before, with the benefit of helping users develop a clearer understanding of where in time their money enters and leaves.
When you are creating a new Scenario, simply select whether you want it to be a Cash Flow Scenario or a Sales Scenario. You are also able to change the type of Scenario afterward by clicking on your Scenario Settings.
Here’s a useful GIF to illustrate this:
Use Case for a Cash Flow + Sales Forecast
A popular structure for a forecast often includes running a sales forecast alongside your cash flow forecast. This view is valuable to not only help you figure out your near-term cash flow and identify potential issues but take a longer-term look at your potential cash flow through your sales forecast.
This approach is very popular among project-based businesses that are in a constant state of sales as they land contracts and run them through their business. Not only does the sales forecast help them keep their staff busy and a constant flow of cash into their business, but it also helps them identify potential capacity issues before they hit.
There are other benefits as well. Looking back on your sales pipeline scenario vs. your cash flow scenario in past months can help you see how many deals you're closing vs. pitching (if you leave lost deals in your sales scenario), and to see how long it takes for the typically closed deal to turn into receivables that your business can bank on.
If you have further questions on this matter, chat with us or send us an email at firstname.lastname@example.org