Trusts must manage cashflow as part of internal control processes
Your control framework must "apply discipline in financial management, including managing debtors, creditors, cash flow and monthly bank reconciliations".
This is set out in the Academy Trust Handbook (part 2.7).
How to prepare cashflow forecasts
The advice in this section comes from Martin Owen, a qualified chartered accountant with experience of working with schools.
While you’ll probably use your accounting software package to create forecasts, it’s also possible to create forecasts manually using a programme such as Excel.
To create them manually, you’ll need to have a good idea of your academy's current bank balance, as well as the value and date of significant expenditure and income, such as wages and the academy's general annual grant (GAG).
A monthly cashflow forecast takes the form of a full bank reconciliation, looking at your academy's income and