What is a bill?

When a vendor wants to collect money from you for services or goods provided, they send you a document that specifies what was provided, the date, payment terms etc. On the vendor's side this document is referred to as an invoice, on your side (the customer) it is referred to as a bill.

So, bills represent money that you owe your vendors.

Read more about what a bill is on Accounting coach.

How are bills used on Cash Flow Frog?

On Cash Flow Frog bills refer to money that your business owes its vendors.
This balance is one of the main metrics that affect your forecast, hence it is shown at the top of the forecast page where it is always easily noticed.

Note that your bills balance refers only to outstanding bills. When bills are paid cash goes out of your bank account, which is a part of your Cash on Hand.

How do bills affect your forecast?

Outstanding bills are added to your forecast as cash-out transactions that will take place in the future, on the bills' due dates. 

Businesses have numerous bills to pay on different dates, together with many other transactions, and this makes cash flow planning an arduous task. For this reason our software places each bill in your forecast on the date it is expected to be paid and you can see exactly when and how it will affect your cash balance.

For example:
Let's say a vendor sold $5,000 worth of inventory for which you have to pay by January 20th. This transaction is regarded as a bill that will appear in your forecast as a $5,000 cash-out transaction on January 20th and affect your cash balance curve accordingly. 

When you pay the bill, money goes out of your bank account. When you reconcile your bank account, changes to your balance are updated on your accounting software. The data is synced with Cash Flow Frog automatically, the bill moves to your past transactions and changes to your bank account balance are updated on your Cash on Hand.

How the software deals with overdue bills

The forecasting algorithm expects bills to be paid on their due date. So, when a bill's due date arrives and it hasn't been paid yet, the software pushes the due date one day ahead, showing that the bill will be paid tomorrow. This process repeats every day until one of these terms is met:

  1. The bill is paid -
    When the bill is paid the regular course of events takes place as described above. 
  2. You exclude the bill -
    You may decide to exclude a bill for various reasons. For example, if you realize that you don't need to pay it.
  1. The due date reaches the limit you set -
    You can set a limit of x days after due date, for when the system should automatically exclude bills because they are long overdue and most probably will not be paid.
    This feature is still in beta and will soon be available to all users. 

How to edit Bills?

Bills can be easily edited in the 'Edit scenario' popup.

Please notice that editing bills affects only the Scenario you are in and not all scenarios. As well, all edits on Cash Flow Frog affect only your forecast scenarios and never affect your accounting software data.

Bills settings

Decide how the software should refer to your bills:

  1. Exclude or include bills in your forecast scenario
    This options allows you to exclude all of your bills from the forecast. As a rule we strongly recommend to always include your bills in the forecast, there are very few situations when bills should be excluded.
  2. Set expected date rule
    This option allows you to decide when the software should expect your bills to be paid, compared to their due date. For example, if you usually pay your bills 5 days before they're due, you can set the expected date 5 days before due date. 
  3. Automatically exclude long overdue invoices
    This option allows you to set how many days after due date the software should decide that an overdue bill is not likely to be paid and therefore exclude it from your forecast.
    This feature is still in beta and will soon be available to all users. 

Edit bills' data

Cash Flow Frog gives you the freedom to edit bills' data, in order to reflect changes that you think might happen, without affecting the original bills on your accounting software. Edit expected dates, details, amounts or even exclude specific bills from your forecast altogether.

For example, if you think that a bill payment is going to be made later than it is due, you can push the expect date so that the forecast will show the payment goin out later.

Never be surprised by a change in cash flow again

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