Question

Why is it advantageous to fill out the budget cash flow spreadsheet at the start of the simulation??

Answer 1

Cash flow spreadsheet refers to the statement of planned cash inflows and outflows. Budget cash flow spreadsheet is used to estimate the short-term cash requirement and it can also be used to detect where the maximum cash is going out and from where is the maximum inflow.

It is also important because it helps you determine whether the your business has enough cash to run or to expand it in future. Hence cash flow spreadsheet is a must in a simulation to grow.