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Everyone knows what cashflow means……, Right? Let us not split hairs, from my experience with providing financial consulting, I gather than only 1 in 10 people really know and understand cashflow.
I could be wrong, but after you have read this, you will see why I believe my estimation to be on the money.
Now, if you think you do not know cashflow or need a refresher, you have come to the right place.
What is Cash flow?
In its simplest form cashflow is the difference in timing of your money (cash) coming in and your cash going out. That is, it, but critical is the “Timing.” You might have heard stuff like cashflow is the profit you make, or the losses you make. Well, that is not cashflow at all. Let me give you an example:
On the 24th of April 2022, you receive a utility bill for $100 for March 2022 usage. You must pay the bill by 1st May 2022. You also expect to receive your salary of $2,000 for April on 30th April.
What is your cashflow on 24th April, and what will it be on 1st May 2022?
On 24th April you had zero cash in your hand or in the bank Cash = 0
On 24th April you owed $100 to the utility company Cash = 0
The timing difference between incoming and outgoing cash is zero Cashflow = 0
On 1st May you receive your salary in the bank of $2,000 Cash = $2,000
On 1st May you pay the utility bill of $100 online with you bank card Cash = ($100)
The timing difference between incoming and outgoing cash Cashflow =$1,900
Why is knowing cashflow so critical?
From the moment we start to transact with money we need to always have an idea of our daily money obligations. That means if we want to avoid issues, we must start from a basis of knowing the cash money we have now, and will have in the future. If you run a business without a handle on your cashflow your business will someday fail, for sure.
The main reason 90% of businesses fail is because the owner does not understand their cashflow on a day to day, weekly or monthly basis.
Written by: Jack Avon
The #NUM error will occur when in Excel when it's just not possible to give an answer to a formula based on the inputs of an array of cells.
There is also a possibility of getting the #NUM error from using the wrong arguments in function, in other words the function being used is missing or has too many variables in it.
To fix this error take a look at what you are asking of the formula in relation to the cells or array of cells, and also look at how you have written that formula.
The dreaded name error, what does it mean. Well its not simple answer as the #NAME error can occur for several reasons:
Why does it happen
It could be:
- You have used a range name that Excel does not recognise because its been defined.
- You have used a range name but misspelled.
- You have called a function but have misspelled it.
- The range your are calling does not make sense.
- Could be other reasons.
But usually the Name error is all about spelling.
To fix you just need to examine every part of the formula and look for misspellings or out of range arrays.
I absolutely these templates. All the functions I will ever need. No glitches, No hassles, No problems, and the best support team I have yet to encounter. Thanks for the only template I will ever need. Can't praise them enough - Excellent.
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