Cash Investment into the Business


Your task in this Budget is to determine the amount of cash you plan to invest into your business venture. Cash refers to the number of dollars you plan to personally  "give" the business. Many people take money from their personal savings account and invest it into their company. Moreover, determine how much money you plan to personally invest into your business now and possibly in the future.

Another item to consider in this Budget is the amount of money other people intend to invest into your business. These funds may come in the form of shareholder's investments or loans from family members, friends, and/or the government. Also, determine when you expect to have these sources of funds (which month(s)). You will also be required to determine the interest (if any) that may apply to any anticipated loan(s).

The above items will become part of your Opening Balance Sheet and possibly your Forecasted Cash Flow Statement; depending upon when you anticipate the funds to materialize.

Lets assume, the only investment of money into Murray's business will come from Murray himself. Moreover, Murray plans take $7,500 out of his personal savings account and place it into his businesses' checking account on July 1, 200X. As a result, Murray's 200X Forecasted Cash Flow Statement will show a "Cash Inflow" of $7,500 for the cash he invested into the company (see Beginning Cash Balance).

Categories: Forecasting