A year-in year-out cash flow budget is created by working out an average value for each code using the actuals for both Income & expenses over a 2-5-year period and then creating a budget for a year using these figures.
To arrive at the average cash flow data, the monthly total of each code selected will be added up for each year selected and then divided by the total number of years selected.
This budget can be a useful place to start when forecasting as it will give you a reasonable idea of the income and expenses that are likely for each code for a year, based on your historical figures.
Warning: Data for codes that do not have entries for every year selected will be distorted. Eg. New codes with only one year’s data will still be averaged over the entire period selected.
To create a year-in-year-out budget:
- From the Home Page, click Budget
- Click Quick Budget
- Click Year-In Year-Out Budget
- The Create Year-In Year-Out Budget window is displayed.
- Budget Title: Give budget a Title
- First Month of YIYO Budget: Select the First Month
- Get average of previous: Choose how many previous years’ cashbook data you wish to average.
- Date to use: Select whether to average data based on the Transaction Date or the Cleared at Bank Date
- Bank account box (on the left): Choose the banks that actuals data is to be imported from by clicking on them.
- Codes box (on the right): Select any codes you do not wish to include. Eg. Suspense codes should not be included.
- Click the green tick to begin averaging and import of data
Note: If you do not have enough data in your cashbook to import and average, you will be asked to decrease the number of years entered at Step 10.
You will see a message like this one:
Click Ok and alter the number of years (See Step 6) and try again.