Cash Flow Analysis
At Cedar Brook, we believe a pivotal step in the financial planning process is cash flow analysis. Cash flow projections are a key step in measuring the gap between where you want to be and where you are now. In its true form, cash flow analysis focuses on the income, expenses, capital projects and savings/investment rates for a given set of data.
Listed below are just a few of the items covered in performing a cash flow analysis:
- Analyze expenses versus current income
- Analyze and prepare projections on potential changes in expenses at future stages of life
- Prepare projections of all potential sources of income
- Prepare projections of future taxes
Measuring your current and future cash flow situation will help you gain an understanding of what you will need to do to accomplish your goals.