- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
Bank Charges Expense - from Operating Expense Budget
When Murray opens a business account, the bank will charge his COMPANY a monthly service fee. In addition, each time Murray writes a check, he will be charged a processing fee. After speaking with a clerk at his bank, Murray estimates he will incur bank and service charges of $40 each month. Therefore, his 200X Forecasted Cash Flow Statement will show a monthly Cash Outflows of $40 for Bank Charges. In addition, Murray's 200X Forecasted Income Statement will show a total "Bank Charges Expense" of $240 (IE $40 per month x 6 months = $240).
Murray decided not to increase his monthly forecasted Bank Charges Expense during 200Y. In other words, Murray's 200Y Bank Charges are expected to remain at $40 per month. As a result, the 200Y Forecasted Cash Flow Statement will show a Cash Outflow of $40 each month between January and December for Bank Charges. In addition, Murray's 200Y Forecasted Income Statement will show "Bank Charges Expense" totaling $480 for the year ($40 per month x 12 months).