What is mean by CASH FLOW ? Is the one of question for Project manager, due to which PM can identify the how invoice and collection fluctuation from starting to ending. When any project start and start incurring the cost so at the start the cost is very less because it is the mobilisation stage. As the work start to execute then the cost will incurred as per the budget, but most of the time the budgeted cost is not equals to the actual cost due to which the variance will form.
Cash flow also called as the S-curve. Now the major question is What is the S-curve?
As listed above the S-curve is the term determined from the cash utilisation, like as the 1st stage of any project is mobilisation and after that project may start to incurred more cost, due to this reason the curve which form it look like as an S-curve.
Now variance is important thing which need to know because variance means (Planned -Actual).
Watch the following video properly which help you to get an idea about the Cash Flow and how it can prepared in the Excel.