Planyard Project Cash Flow Forecasting

In this article, you will find an overview of the Planyard Project Cash Flow Forecasting feature and how to utilise it.

Table of Content 

1. Introduction
2. Project Cash Flow Forecasting Video Tutorial
3. Prerequisites
   1. Activate Cash Flow Forecasting at the Company Level
   2. Activate Cash Flow Forecasting at the Project Level and Add Project Dates
4. Create a New Cash Flow Forecast
   1. Available Visual Options and Features
   2. Understanding the Cash Flow Table
   3. Adding Information
5. Creating the Next Month’s Forecast
6. Possible Notifications and Errors
   1. Zero Revised Budget or Income
   2. Approved Costs with Zero Revised Budget

Introduction

Effective cash flow management is crucial for any construction project, ensuring that you have the funds available when needed and avoiding costly delays. With Planyard’s project cash flow forecasting feature, you can easily predict and manage the inflow and outflow of money throughout the project lifecycle. This tool helps you maintain financial stability, avoid cash shortfalls, and make informed decisions, ultimately leading to smoother project execution and better financial outcomes.

Project Cash Flow Forecasting Video Tutorial

Prerequisites

To use the cash flow forecasting feature, it must be activated at both the company and project levels. Additionally, the project must have an end date specified for the cash flow table to display the correct timeline.

Activate Cash Flow Forecasting at the Company Level

To activate cash flow forecasting at the company level, you need permission to edit company account settings. If you don’t have the necessary permissions, contact your internal account owner.

Follow these steps to enable Project Cash Flow Forecasting:

1. 1. Click ‘Company’ in the top menu row.
   2. Click ‘Settings’ in the company menu row.
   3. Navigate to ‘Company-wide features’.
   4. Find ‘Cash Flow Forecasting’ in the list of features and enable it.

Activate Cash Flow Forecasting at the Project Level and Add Project Dates

To activate cash flow forecasting at the project level and set project dates, navigate to your project and follow these steps:

1. 1. Click ‘Settings’ in the project menu row.
       
      1. Enable ‘Cash Flow Forecasting.’
      2. Click the pencil icon to enter the project dates.
   2. The ‘Cash Flow’ option will now be visible in the project menu row, allowing you to start conducting Project Cash Flow Forecasts.

Create a New Cash Flow Forecast

To create a new Cash Flow Forecast, follow these steps:

1. 1. Navigate to your project.
   2. Click ‘Cash Flow’ in the project menu row.
   3. If no prior forecasts exist, click ‘Create Cash Flow Forecast’ in the middle of your screen. If you have previous forecasts, click ‘Create Next Forecast’ in the top right corner.

You will now see the table where you can conduct the cashflow forecasts. 

Available Visual Options and Features

Toggle categories: This button allows you to show or hide different budget categories in your cash flow table. It helps you focus on specific sections of your budget by collapsing or expanding the categories as needed.

Visible rows: This dropdown lets you adjust the number of rows visible in the cash flow table. You can choose to see all rows or limit the view to a specific number of rows, making it easier to manage large datasets.

Export: Click this button to export your cash flow forecast as an Excel file. This is useful for sharing the forecast with stakeholders, performing further analysis, or maintaining an offline backup.

Change name: This option allows you to rename your cash flow forecast. It’s helpful if you want to give your forecast a more descriptive or updated title that reflects its contents.

Delete cashflow: Click this trash can icon to delete the current cash flow forecast. Be careful when using this option, as it will remove all data associated with the forecast.

Finish cash flow forecasting: Once you’ve completed your cash flow forecast, click this button to finalize it. This action locks in the data, preventing further changes and marking the forecast as complete.

Understanding the Cash Flow Table

When you create a new cash flow forecast, all budget cost headings, subheadings, and items are automatically displayed. For each of these, two rows will appear: one for costs and one for income.

Additionally, you’ll see two important columns for each row:

Revised: This column shows the latest estimate for each category. In the cost row, it reflects the most recent estimate of expenses, and in the income row, it reflects the most recent estimate of income.

Remaining: This column displays the remaining amount for each category. In the cost row, it shows the remaining expenses, while in the income row, it shows the remaining income.

Refer to the image above to visualize the layout of the cost headings, subheadings, items, and their associated rows and columns.

Adding Information

On the right side of the table, all project months are displayed. Each month is divided into two columns: the left column for entering percentages and the right column for adding figures amounts. You can input numbers directly into specific line items, or you can enter them at the heading or subheading level. When you add an amount to a heading or subheading, the table automatically calculates the percentage and applies that percentage to all line items within that heading.

Refer to the image above to visualize the layout of the project months and the related columns.

From here, you can start filling out the information for your forecast. Use the arrow keys on your keyboard to easily navigate through the table and enter the necessary data. Once you're satisfied with your forecast, click 'Finish cash flow forecasting' in the top right corner. 

Creating the Next Month’s Forecast

When you want to conduct the next forecast and create the forecast for the following month, all of the information from the previous forecast will carry over into the new one. This allows you to easily make adjustments without starting from scratch.

Additionally, for each month that is concluded, Planyard will automatically visualize all approved costs and income. This includes all approved invoices, confirmed subcontractor payment applications, and any income that is dated within the month.

By displaying actuals for both expenses and income, this feature ensures that your cash flow forecast remains accurate and up to date, making it easier to manage and adjust your project’s financial outlook.

Possible Notifications and Errors

When working with the cash flow forecasting feature, you may encounter certain notifications or errors that help ensure the accuracy of your forecasts. These notifications are designed to help you avoid errors in your cash flow forecasts, ensuring that all amounts are properly allocated and that your projections remain accurate.

Zero Revised Budget or Income

If the revised budget or income for a particular item is set to zero, a blue icon will appear next to that item. This serves as a warning that there is no amount available to distribute across the months. When this occurs, you will be prevented from adding any forecasts for that item until the revised budget or income is updated to a value greater than zero.

Approved Costs with Zero Revised Budget

If a revised budget is set to zero but there are approved costs connected to that line item, a yellow warning triangle will appear. This indicates that all actuals for this item have been removed because the revised budget or income has been set to zero. This warning helps you understand that any existing costs or income associated with the item have been cleared, and you’ll need to address the budget to reinstate them.

These notifications are designed to help you avoid errors in your cash flow forecasts, ensuring that all amounts are properly allocated and that your projections remain accurate.