Formula
Closing cash = opening cash + customer collections + other inflows − operating payments − equipment and other outflows − owner withdrawals.
Worked example
Opening cash of 8,000 plus collections of 7,000, less operating payments of 5,000, equipment of 3,000 and withdrawals of 1,500 leaves 5,500. Cash falls by 2,500 over the period.
Use it carefully
Use the same currency and period throughout. Enter flows as positive amounts; the opening cash balance can be negative. Include loan proceeds under other inflows and loan repayments under other outflows without counting them twice. This tool has no payment-date schedule and does not calculate profit or tax. A positive closing figure can still hide an earlier shortfall.