Cash and Cash Equivalents
Accurate cash flow forecasting is essential for managing a business's finances. PlanGuru simplifies this process by automatically handling cash flow without requiring manual projections
💰 Cash & Cash Equivalents
In PlanGuru, the Cash & Cash Equivalents line represents the core of your company’s liquidity — automatically calculated and continuously updated as your financial model evolves.
1️⃣ Overview
When you open a new (blank) scenario, the Cash line is automatically pre-created on the Balance Sheet.
This account behaves differently from others because PlanGuru automatically manages all changes to it based on:
-
Balance Sheet activity (asset and liability changes)
-
Income Statement results (revenues, expenses, and net income effects)
You can rename the Cash line’s description but cannot modify its projection method — it is fully automated.
2️⃣ Automatic Cash Adjustments
PlanGuru continuously adjusts cash as you make changes across your model.
| Example | Impact on Cash | Description |
|---|---|---|
| Add a Fixed Asset | 🔻 Cash Decreases | Cash is reduced when purchasing assets unless financed |
| Finance an Asset with a Loan | 🔸 No Cash Change | The loan offsets the cash outflow, keeping cash stable |
| Increase Accounts Payable | 🔺 Cash Increases | Deferring payment increases available cash |
| Reduce Accounts Receivable | 🔺 Cash Increases | Collecting customer payments increases cash |
These relationships ensure your Balance Sheet stays in balance and your Cash Flow Statement accurately reflects inflows and outflows.
3️⃣ Income Statement Impacts
PlanGuru also automatically adjusts cash based on the Income Statement:
-
Revenue Increases Cash → when sales are collected immediately.
-
Sales on Account → cash adjusts based on receivable collection terms.
-
Expenses Reduce Cash → unless they are accrued or deferred.
-
Net Income Impacts Cash → after accounting for all non-cash and timing adjustments.
📸 [Insert Screenshot: Example – Cash impact of revenue and receivable timing]
4️⃣ Cash Flow Integration
PlanGuru automatically generates a Cash Flow Statement based on all activity in the Income Statement and Balance Sheet.
This provides a complete view of your company’s liquidity:
-
Operating Activities: Changes in working capital, accruals, and income items.
-
Investing Activities: Fixed asset purchases and disposals.
-
Financing Activities: Loans, equity injections, and repayments.
This integration ensures that every model you build — from startup budgets to multi-entity forecasts — includes an accurate reflection of how your financial decisions impact cash.