Adding Income and costs in Float is like adding a placeholder for cash that might come into or leave the business, allowing you to build up a picture of how the future might look. These are expectations for future cash flows.
Creating placeholders for expected income and costs allows you to maintain an accurate cash flow, this help you to:
Build a good visual representation of your cash runway
Spot where you may have cash gaps
See a comparison of what is expected, against what has happened for the month.
Make Informed decisions
After every sync, your invoices and bills (if you have any) are placed into the table based on their expected payment dates. Without any Income and costs set, you’ll see your invoices and bills give life to the blue line on the graph automatically, as these are the only expectations Float has to work with. We call the blue line your base!
But what if you want to look further into the future than the invoices and bills? Or what if you don’t create invoices and bills for everything, or at all? This is where adding Income and Costs come in.
Your forecast is built with the amounts that you enter, and each day Float updates itself and pulls in the latest transactions from your accounting software, which slowly fill up your Income and Costs expectation.
Once an actual becomes larger than the Income and Costs budget, Float will use the actual amount instead.
At the end of the current month, all actuals will be used instead of budgets, ensuring your forecast is as accurate as possible.
Your expectations will constantly change, so Float’s budgets are made to be flexible. Edit, delete, update your budgets when you get more information!