2.1.4 Planning

• Business plan - a document giving details of a variety of aspects about the business in order to provide a strategic look to attract investment.
• Cashflow - the movement of cash into and out of a business over a period of time.
• Cash inflow - the flow of cash into a business.
• Cash outflow - the movement of cash - the flow of cash out of a business.
• Cashflow forecasts - the predicted flow of cash into and out of a business over a period of time.
• Closing balance - cash left in the account at the end of the month.

  Closing balance = net cashflow + opening balance.
• Net cashflow - the difference between the cash flowing in and out of a business over a period of time.

  Net cashflow = cash inflows - cash outflows
• Opening balance - cash in the bank on the first day of the month.