ProfitSee’s Three-Way Cash Flow forecast doesn’t only allow you to generate three-year cash flow forecasts, but also enables you to add strategies to the forecast. Learn how to modify forecasted sales tax assumptions.
Before starting to add strategies, make sure you already created a baseline projection. For more information please read the article Using Three-Way Cash Flow Forecasting.
Sales Tax Assumptions
1. To add a strategy go to the Forecasting Tab, choose the 3-Way Cashflow Forecast and click on "Manage Strategy". Our pre-built templates appear, and you can choose the strategy you would like to add.
2. To see the impact on the cash flow forecast of modifying sales tax assumptions, click on "Sales Tax Assumptions".
3. First, you will specify the Sales Tax payment terms and whether that is paid on a monthly, quarterly, or yearly basis. You will be shown the monthly average sales tax rate.
4. Next, you'll determine the monthly average sales tax rate. This is done by filling in each of the month values.
5. In addition to the current year, you are also able to modify sales tax assumptions for the next two years by selecting the drop-down menu next to "Reset Tax Rates".
6. Once you've set the sales tax assumptions to your preference, simply click "Save" to view the impact of this strategy on cashflow and compare it against the baseline performance projection.
*** You can always start over again or from scratch by selecting the "Reset Tax Rates" button.
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