Cash Flow of a New Restaurant Business

The closest analogy to a business’ cash flow is a person’s checking account with deposits and withdrawals. Similarly, the cash flow of the restaurant will include cash inflows (customer payments, for example) and cash outflows (payments to suppliers, for example.) A Cash Flow template is included in this package.

To prepare a cash flow document for your business, first determine the fixed monthly expenses, which include rent, salaries, insurance, equipment rentals (if any) and monthly debt payments. Next, include payments that are made regularly, although not necessarily monthly, including advertising and marketing. Then, take into account the cash receipts, which may be variable depending upon the seasonality of your business. Variable payments come next, and these include extra supplies when business is booming. Next, factor in taxes because as with all businesses, payments to the IRS will be regular and variable, depending again upon the variable profitability of the business. Finally, determine your cash flow for each month and your cumulative cash flow for the entire year. Follow the template in the included Cash Flow Projection Plan.