Understanding the structural timing mismatch between when revenues are received and expenses are paid is important to prevent a liquidity shortfall. The added uncertainty resulting from revenue delays makes monthly cash flow modeling critical.
Analytical Compass Cash Flows is a dynamic financial model that builds your fund balances on a monthly basis throughout the fiscal year. It enables you to allocate your revenues and expenses on a monthly basis based on your detailed historical experience. The user-friendly Excel environment makes it easy to reallocate any cash flow and immediately see the impact. These analyses are built both in total (all funds) and individually for up to 10 specific funds.
Monthly Revenues
- Develop monthly expected revenues based on annual budgets and historical experience
- Incorporate year to date experience and compare against expectations
- Reallocate revenues quickly and easily to reflect changes throughout the year and immediately review the implications
Monthly Expenses
- Develop monthly expected expenses based on annual budgets and historical experience
- Incorporate year to date experience and compare against expectations
- Reallocate expenses quickly and easily to reflect changes throughout the year and immediately review the implications
Fund Balances
- Roll forward beginning of year fund balances based on year to date experience and projected allocations for the remainder of the year
- Identify potential liquidity shortfalls in advance and test alternatives to avoid problems
- Conduct cash flow analysis both in aggregate as well as for specific funds