Demonstrate understanding of cash flow forecasting for a business
This standard is about predicting how much money will flow in and out of a farm or agricultural business over time. You'll need to use software to create a cash flow forecast showing future receipts and payments, then show how external factors (like price changes or bad weather) would affect those numbers and what the business might do about it.
You use software to create a cash flow forecast, identify how an external factor would change it, and explain what impact that has on the business.
You go further by explaining more than one possible response the business could make to the external factor and its variation.
You justify why certain business responses are better than others—explaining the reasoning behind which response would actually work best for the business.
Standards typically taken alongside or after this one. Same subject, grouped by level.