A Better Way to Manage Your Everyday Money - Book - Page 276
Depending on how they prefer to manage their household
finances, the couple can start with one or multiple cashflow
spaces on one or multiple computers.
To negotiate how they want their combined finances to work
for the first year of their life together, the couple works
through the getting started process for each cashflow space,
but they do not pay bills for the first time. On the advance
plan start date, the newlyweds:
● uncheck their cashflow spaces’ advance plan
checkbox, and
● finish getting started by paying bills for the first time as a married couple.
Their combined or separate cashflow spaces become the couple's ongoing tool for managing
their household finances.
Small business plan
When putting together a business plan for starting a small business, projecting the startup
cashflow is typically done with a spreadsheet. There are a plethora of templates available for
doing this. After a small business opens, it is recommended that the cashflow projection
spreadsheet be updated periodically, but that chore is often neglected. The pressure of day-to-day
operations gets in the way of doing any business planning with manually prepared documents.
The advance plan feature in PerNetFlow overcomes the disadvantages of creating and
maintaining a static business plan.
When first preparing the small business plan, an advance plan cashflow space is added in
PerNetFlow with a start date of the business' opening day. The cashflow plan for the first twelve
months of business operations is created by working through the getting started process, but not
paying bills the first time. (The group name Allowance can optionally be changed to something
like Petty Cash.)
On opening day, the cashflow space's advance plan checkbox is unchecked and getting started is
completed by paying bills the first time. Using the cashflow space thereafter to manage daily
cash provides a dynamic business plan that is driven by day-to-day operations. Planning
cashflow for the coming year becomes a natural part of doing business.
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