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Solution Library
How To Prepare Cash Flow Budget With No Historical Accounting Data
Question
Suppose you are asked to do a cash flow budget for the next 12 months for a newly opened baby health clinic. The budget must be done on a month-by-month basis. As the clinic has just opened you have no historical accounting data. The clinic is allowed to treat both private (fee paying) and public (no fee charged) patients. Outline the steps you would take, the type of questions you would need to ask and any assumptions you would need to make to develop the budget. Highlight the main areas of concern you would have about the accuracy of your forecasts – in particular, would you be more confident about your revenue or expense forecasts?
Summary
The question belongs to Finance and it discuses about preparing a cash flow budget for a newly opened baby health clinic which has no historical accounting data.
Total Word Count 148
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