How to deal with the cash flow and the credit card.

Mike or Penny Novack stepbystepfarm at dialup4less.com
Mon Sep 25 13:36:41 EDT 2017


On 9/24/2017 8:31 PM, R. Victor Klassen wrote:
> Folks,
>
> I think the original poster is looking at how to forecast cash flow.  Given the credit cards have different due dates, and assuming they are paid on their due date, does the account from which they are paid have enough in it for the coming month?
This depends on HOW one uses a credit card. Can scarcely schedule these 
transactions because the amount of the payment can be anything from the 
minimum payment due up to the full balance. That's a CHOICE made by the 
human. Not known in advance. Even those of us who normally pay the full 
balance each month on credit cards might SOMETIMES pay less if dealing 
with a cash flow crunch.

Look, this is really related to possible confusion about what a "cash 
flow" report means (should mean) and doesn't mean.

Budgets may be in terms of profit and loss (ensure expenses not greater 
than income) OR in terms of cash flow planning. You may need BOTH of 
these because can be all right with regard to one but not the other.

Michael




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