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...ine of credit with banks or other lenders is often recommended to avoid waitin...unnecessary meetings to put out fires, and helps you to determine the best tim...

... events. A cash-flow budget gives management time to predict cash needs and make good decisions. For the short term, cash on hand, reserves, or personal funds may be adequate. Borrowing may be a solution. A preapproved line of credit with banks or other lenders is often recommended to avoid waiting until you need money to apply for a loan. This budget is like any other management tool. It helps to prevent costly errors, saves time by avoiding unnecessary meetings to put out fires, and helps you to determine the ... money available to pay expenses for a given period. Start with cash on hand. Add direct bill commission to be received. For accounts receivable, note commissions to the agency rather than net premium to the carrier. Here are other items to include: Fees for consulting or special services Profit-sharing earned and waiting for the check Sale of property-real, personal. or equipment Interest-but only if added to an operating account, not if it's to be left with the principle Agency debts to be collected Deposits and new business-but only if they're to ... L statement to have an operation loss while cash shows to be in a positive position. This could happen if you have large deductions for depreciation on money spent in past years. If you find cash on hand to be adequate or have a surplus, transfer the excess money to an interest-bearing account or some other short-term investment. Don't leave more money than necessary in the checking account. By reviewing the payment dates for annual expenditures, you can easily adjust your cash needs for any period, whether monthly or quarterly. If income ...