• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Cash Flow for The Sea View Hotel. Evaluate how using cash flow forecasts and financial recording systems can contribute to managing business finances at The Sea View Hotel:

Extracts from this document...


BUSINESS COURSEWORK: FINANCE 3 AMY HEATH Task 1 Cash flow forecast for The Sea View Hotel: Task 2 Analyse the cash flow produced in Task 1, including the implications of the regular and irregular cash inflows and outflows for The Sea View Hotel: The advantages of a cash flow are that you can view how much money is going in and out of your business every month. The cash flow for The Sea View Hotel shows that they are in loss for the majority of the year. The inflow isn't good enough and to improve this they should raise the price of the hotel rooms and food. To raise their inflow they could advertise and do promotions to get more customers/revenue in. The outflows in some parts are big values, (the irregular cash outflows) which could be paid over time instead of all at once. They could reduce outflow even more by reducing the price of the food and utilities, and even change their insurers to a cheaper one. ...read more.


This is a bill for payment. When the customer receives the invoice it is checked carefully to make sure that it matches the GRN (Goods received note) and the prices match those quoted on the purchase order. This can be used if the supplier is trying to overcharge the customer. * Credit Note: Occasionally, there may be a problem because the goods supplied are incomplete, incorrect or damaged. Or an invoice may be disputed because the price is too high. If goods are returned or an invoice is incorrect then a credit note is issued. This is the opposite of an invoice and confirms that the amount on the credit note will be deducted from the customer's account. * Cash Receipts and Payments: Most business customers pay be cheque or electronically. In both cases there is no need to issue a receipt. These are only given to acknowledge the cash payments, which are rarely made by business customers. This is why they are often called cash receipts. This can be used for returning items as a proof of purchase. ...read more.


This can act as an early warning system. It can help you manage your finances in advance by looking at the previous years forecast and it can show you where to improve and where you did well. By recording transactions accurately you are cutting down on fraud which will help the business make more profit. You will be cutting down on fraud because you will have a paper trail that you can use to back you up if need be. Better stocktaking means they can order stuff that they need, rather than overstocking or under stocking items which wastes money. Cash flow forecasts can help businesses to spread payments out over a period of time, making it so there isn't one big dip one particular month. Disadvantages: Using a cash flow forecast to predict the businesses future can be risky as it is only a prediction based on previous years. Things such as a recession could happen and so the business will not get as much money as it did in previous years. This could mean that the business isn't prepared when they get a sudden dip in revenue and they could go bankrupt. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Marked by a teacher

    Cash flow. A cash flow forecast is a document that predicts cash requirements in ...

    4 star(s)

    has loaned from a bank, made in sales and been charged to lease the assets of the business. The major source of income for the garden centre is the public, but for temporary money, the bank can loan money to you.

  2. Marked by a teacher

    cash flow

    3 star(s)

    and it will also shows us those months in which we had a positive cash flow (more cash inflows than cash outflows). It allows Down 2 U to prepare a cash flow forecast for the forthcoming year. A cash flow forecast is a document, which outlines the forecasted future cash inflows (from sales)

  1. Identifying and describing the main financial service needs for a student starting at university

    As previously explained. Student Loans form LEA These are loans from the local borough as previously explained. Personal Loans from Banks The most popular methods of burrowing money are loans. This is a fixed sum of money lent for a stated period of time, for example �2,000 for three years.

  2. Costs, Profits and Break-even Analysis.

    or they may be stocks of finished goods. Whichever they are it is vital for the firm to control the level of stocks very carefully. Too little and they may run into production problems, but too much and they have tied up money unnecessarily.

  1. What does Finance involve.

    General costs: �8264.40 Miscellaneous costs: �600.00 + Total START-UP costs (for 1st 2 weeks): �16619.61 �16619.61 is my total start up cost for my business to actually open up and get going. I have inherited �5000 at the start of my business so now I will have to deduct that from my total start up cost.

  2. annual cash flow forecast

    didnt change and this is good for our business because we will be able to plan our cash flow. Task 2 b Regular in - and ourflows - This type of inflow is when the business offers customers discounts if they sign up to pay direct debit, which is a

  1. Preparation of a cash flow forecast

    �50.00 �50.00 �50.00 �50.00 Total outflows �3,850.00 �4,100.00 �4,350.00 �4,600.00 �4,850.00 �5,100.00 Net cash flow �350.00 �100.00 �150.00 �400.00 �650.00 �900.00 Opening balance �5,000.00 �4,650.00 �4,550.00 �4,700.00 �5,100.00 �5,750.00 closing balance �4,650.00 �4,550.00 �4,700.00 �5,100.00 �5,750.00 �6,650.00 In the first 3 months January, February and March Wooden Wonders had a poor cash flow.

  2. Planning the finance for my new business.

    �250 �250 �250 Electricity Bill �40 �40 �40 �40 �40 �40 Water Bill �50 �50 �50 �50 �50 �50 Gas Bill �67 �67 �67 �67 �67 �67 Phone �80 �80 �80 �80 �80 �80 Loan Repayment �65.42 �65.42 �65.42 �65.42 �65.42 �65.42 Council Tax �100 �100 �100 �100 �100 �100

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work