How to use the Cash Flow Forecast correctly.

Posted by Tom P. on July 2, 2008, 1:13 am

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I'm apparently not doing something right... I'd like to use the graph
under Planning->Cash Flow Forecast. The problem I have is I have a lot
of scheduled bills and deposits and when I use the Cash Flow Forecast
I get almost doubling of my numbers because it includes estimated
numbers that Quicken just makes up on the spot. I tried to get them to
go away, I selected "Forecast Items to Create->Known Items" from the
Advanced AutoCreate window, but it only lasts one run. If I have to
run the report again then I have to go back in and change it again.

A sturdy Cash Flow Forecast and editing a single occurrence of a
scheduled transaction are the only thing that are keeping me from
really enjoying this product.

Thanks for the help,
Tom P.

Posted by Andrew on July 2, 2008, 8:56 am

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Tom P. wrote:

> ...

> A sturdy Cash Flow Forecast and editing a single occurrence of a

> scheduled transaction are the only thing that are keeping me from

> really enjoying this product.

> Thanks for the help,

> Tom P.

FWIW, I don't use the formal "Cash Flow". I simply enter ALL my transactions
(mostly scheduled) ahead of time, about one month out (including anticipated
paychecks) and simply use the register to ensure that my 'cash flow' covers
all my anticipated expenses. As long as there are no negative balances in
my checkbook (this includes transfers to savings, tax escrow accounts, and
equity/IRA purchase - everything!) I am happy. Works for me. Just a
thought of another technique you might wish to consider. YMMV.

And about the comment of editing a single occurrence of a scheduled
transaction - I must be missing something. Once the scheduled transaction
hits the register, you most certainly can edit that single occurrence
without affecting all the others past as well as those in the future that
haven't been recorded yet. What am I missing?

--
-------------------------------------------------------------
Regards -

- Andrew

Posted by John Pollard on July 2, 2008, 9:34 am

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Andrew wrote:

> Tom P. wrote:

>> ...

>> A sturdy Cash Flow Forecast and editing a single occurrence

>> of a

>> scheduled transaction are the only thing that are keeping me

>> from

>> really enjoying this product.

> FWIW, I don't use the formal "Cash Flow". I simply enter ALL

> my

> transactions (mostly scheduled) ahead of time, about one month

> out

> (including anticipated paychecks) and simply use the register

> to

> ensure that my 'cash flow' covers all my anticipated expenses.

> As

> long as there are no negative balances in my checkbook (this

> includes

> transfers to savings, tax escrow accounts, and equity/IRA

> purchase -

> everything!) I am happy. Works for me. Just a thought of

> another

> technique you might wish to consider. YMMV.

I've never found any use for a long-term cash flow projection
(and when I try to test Quicken's Cash Flow Forecast, I usually
run into an error message that says I have too many scheduled
bills and deposits), so I can't even provide much useful comment
on the feature.

[I do think you can manually enter transactions in the forecast
that will only affect the forecast, but I'm not 100% certain of
that.]

But for short-term cash flow projections, you don't need to
enter scheduled transactions into your register. The "Scheduled
Bills & Deposits" display available for user-created Home views,
has a nice bar graph that is pretty clear about cash flow (you
select the account, or accounts, to include in the graph) ...
but displays only one month at a time. [If you have the
patience, you can use that graph to look a long way into the
future.]

> And about the comment of editing a single occurrence of a

> scheduled

> transaction - I must be missing something. Once the scheduled

> transaction hits the register, you most certainly can edit

> that

> single occurrence without affecting all the others past as

> well as

> those in the future that haven't been recorded yet. What am I

> missing?

The op wants to modify selected future paycheck transactions to
reflect that fact that they will span a holiday or vacation day.
Then when those modified scheduled transactions appear in
cash-flow forecasts, they will (correctly) forecast a lower
inflow of cash for that period because the op does not get paid
for holidays. By the time the scheduled transaction hits the
register, it will have no long-term forecasting ability ...
unless op wants to enter all scheduled transactions for many
months into the future ... which he has said he doesn't want to
do.

--

John Pollard
First initial underscore Last name at mchsi dot com
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Posted by Tom P. on July 2, 2008, 10:20 am

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> Andrew wrote:

> > Tom P. wrote:

> >> ...

> >> A sturdy Cash Flow Forecast and editing a single occurrence

> >> of a

> >> scheduled transaction are the only thing that are keeping me

> >> from

> >> really enjoying this product.

> > FWIW, I don't use the formal "Cash Flow". I simply enter ALL

> > my

> > transactions (mostly scheduled) ahead of time, about one month

> > out

> > (including anticipated paychecks) and simply use the register

> > to

> > ensure that my 'cash flow' covers all my anticipated expenses.

> > As

> > long as there are no negative balances in my checkbook (this

> > includes

> > transfers to savings, tax escrow accounts, and equity/IRA

> > purchase -

> > everything!) I am happy. =A0Works for me. =A0Just a thought of

> > another

> > technique you might wish to consider. YMMV.

> I've never found any use for a long-term cash flow projection

> (and when I try to test Quicken's Cash Flow Forecast, I usually

> run into an error message that says I have too many scheduled

> bills and deposits), so I can't even provide much useful comment

> on the feature.

Wow, am I the only person that uses this? Why does no one else find
the use in knowing if you are going broke any time soon? It makes me
wonder if I am doing this right. When so many people don't use this, I
have to wonder if I'm doing something wrong.

> [I do think you can manually enter transactions in the forecast

> that will only affect the forecast, but I'm not 100% certain of

> that.]

> =A0But for short-term cash flow projections, you don't need to

> enter scheduled transactions into your register. =A0The "Scheduled

> Bills & Deposits" display available for user-created Home views,

> has a nice bar graph that is pretty clear about cash flow (you

> select the account, or accounts, to include in the graph) ...

> but displays only one month at a time. =A0[If you have the

> patience, you can use that graph to look a long way into the

> future.]

Yeah, but it's a month at a time and that makes it hard to notice
financial boundaries and such.

> > And about the comment of editing a single occurrence of a

> > scheduled

> > transaction - I must be missing something. =A0Once the scheduled

> > transaction hits the register, you most certainly can edit

> > that

> > single occurrence without affecting all the others past as

> > well as

> > those in the future that haven't been recorded yet. =A0What am I

> > missing?

> The op wants to modify selected future paycheck transactions to

> reflect that fact that they will span a holiday or vacation day.

> Then when those modified scheduled transactions appear in

> cash-flow forecasts, they will (correctly) forecast a lower

> inflow of cash for that period because the op does not get paid

> for holidays. =A0By the time the scheduled transaction hits the

> register, it will have no long-term forecasting ability ...

> unless op wants to enter all scheduled transactions for many

> months into the future ... which he has said he doesn't want to

> do.

Exactly. I'm a contractor and, for example the 4th of July is comming
up. I know the check that includes is going to be short. I'd like to
be able to note that in the forcast so the forcast stays moderately
correct. But, since I can't get the forcast to be correct in any case,
it kindof becomes a moot point.

Still looking for a financial package that works correctly...

Tom P.

Posted by Mark Hood on July 2, 2008, 7:30 pm

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> > I've never found any use for a long-term cash flow projection

> > (and when I try to test Quicken's Cash Flow Forecast, I usually

> > run into an error message that says I have too many scheduled

> > bills and deposits), so I can't even provide much useful comment

> > on the feature.

> Wow, am I the only person that uses this? Why does no one else find

> the use in knowing if you are going broke any time soon? It makes me

> wonder if I am doing this right. When so many people don't use this, I

> have to wonder if I'm doing something wrong.

Or you could wonder if the feature just isn't very useful out of the
box :)

I like the concept, but every time I've tried to use Cash Flow
Forecast it never comes close to reality. I'm sure it's something
indiosyncratic about the way I'm use categories or transactions or
schedules or paychecks (or something...) but I haven't had the
motivation to track it down.

I find the registers combined with scheduled transactions much more
reliable and intuitive when forecasting balances.

-- Mark