Page 7 - Budgeting

Statement of Cash Flows

❖ The Statement of Cash Flows is a statement monitoring
the variance between projected and actual income

/ expenses on a recurring basis (usually monthly).

❖ Difficulties : volatility, unpredictability (esp. with
Disaster Relief)

❖ How to:

▪ Account for cyclical and seasonal fluctuations in
cash inflow / outflow

▪ Adjustments made when cash inflow less than
outflow

▪ May call for postponing
expenditures/accelerating client billings

▪ Plan for lags between invoicing/billing for services
and actual receipt of cash

▪ Chart expenditures according to payment
deadline

▪ Factor in debt repayments