Forecasting balance sheet based on transactions which have both unearned revenue and AR components

Forecasting balance sheet based on...

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I have had tremendous difficulty forecasting cash accurately on the balance sheet even using a bookings report and reports from customers about when payments are expected in.  

We have typical 6 figure transaction for multiple year agreements which are then spread as unearned revenue over the life of the term, including quarterly payments if required.  The prepayment is due upon initiation of services, however may lag 30-60 days.  That lag can have a major effect on expected cash flow and inflate AR in the accounting system, which is different that what is used to forecast cash (Excel).

I'm looking for a simple template (methodology) which manages these types of transactions, which vary in deal size.  

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By WhichTyler
28th Jan 2014 13:50

Training

This is the most robust modelling course I have come across 

 

http://www.operis.com/services/training/

 

I did the Financial Planning & Budgeting one years ago and still use the methods regularly

 

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By redboam
10th Mar 2014 08:16

Balance Sheet Forecasts

You may be able to use Figurewizard in order to help with forecasting cash from balance sheet info:

http://www.figurewizard.com/assets-and-liabilities-forecast.html

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