• 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. What does Finance involve.

    I can not relay on it so much there are many big rises for this option and I do not have the time to fall in to those while my business is running. Option 4: Sell or rent out the flat: Using this option if I sell the flat I

  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. financial recording system

    > Business can predict and put in new investments that can be effectively analysed to get good results. Disadvantages > The main problem with the cash flow forecast is the figures needs to be predicted.

  1. Exploring business purposes

    (I got this data from the B-TECH book). Year Primary (%) Secondary (%) Tertiary (%) 1993 4.1 28.9 67.0 1998 4.0 28.7 67.3 2000 3.5 26.5 70 2003 3.1 22.5 74.4 2005 3 22 75 * Approximation share in Britain output by sector.

  2. Planning the finance for my new business.

    and loss account that I created for my business shows that my business will do very well in its first year, the sales revenue is very high compared to the costs of my stock, as a result of this my gross profits are also extremely high.

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