A payment calendar is Definition, types, use, maintenance and example

A payment calendar is the main component of the operational financial planning of any organization. In another way, it is called a cash flow plan. A payment calendar is compiled according to the rule, according to which all expenses are backed up by valid sources of money. This tool reflects real cash flows both in terms of income and expenditure. In our article, we will consider the definition, types of a payment calendar, touch on issues of use and maintenance, and also give an example of its design.

Financial Planning Category

Today, the construction of financial plans occupies an important position in the financial management system of the structure. In the planning process, heads of organizations have the opportunity to assess the state of financial resources, to identify ways to increase the total mass of money and the direction of their most effective use. Moreover, management plan decisions are made based on an analysis of financial information.

A payment calendar is a plan for spending and receiving money. It is being developed for the coming year, and the monthly breakdown is relevant. In other words, this is a budget for the movement of money. The payment calendar includes only the general base of cash flow management of the enterprise. During the month period, these flows can be characterized by a high level of instability and dynamics. The operational control of financial resources and their management can help get rid of these shortcomings.

Financial management today

Financial management in modern conditions is an integral element that allows you to achieve success in business. An enterprise that promptly and accurately monitors the dynamics of costs, revenues and other key financial indicators, one way or another, must have sufficient information base for making the right financial and managerial decisions that are necessary for the growth of the company.

The operational financial management should be understood as a set of technological, organizational and methodological measures that fully ensure the management of current financial operations, as well as the financial resources of the organization. It's about the short term. Usually this period does not exceed one month. The operational management of resources, in contrast to the budgeting system, plans payments in the most detailed form, that is, by the purpose of the payment and the relevant counterparty. It applies substantial detailing of planning terms (up to a day).

Urgent tasks

A payment calendar is the main tool associated with the operational financial management of the structure. It is a planning document that provides daily management of the expenditure and receipt of financial resources of the company.

Planning a payment calendar allows you to solve such problems:

• The reduction of forecast variants of the plan of expenditure and receipt of money (today it is customary to distinguish optimistic, pessimistic and realistic types) to one real problem associated with the formation of the company's cash flows within a monthly period.
• Synchronization of cash flows, both negative and positive type, and to the extent possible. It is worth noting that it is able to increase the level of efficiency of the company's cash turnover.
• The preparation of the payment calendar allows you to ensure the priority of cash payments structure in accordance with the criterion of their impact on the results of financial activities.
• Ensuring the necessary absolute liquidity of the cash flow structure, and to the maximum extent. In another way, this can be called maintaining and increasing the level of solvency within the short-term period.
• The inclusion of cash flow management in the system of operational controlling (and, therefore, actual monitoring) of the financial work of the enterprise.

What are the benefits of the tool?

When introducing a payment calendar for income and expenses, the organization has the following advantages:

• The possibility of forecasting the state of the company financially becomes relevant.
• The level of transparency of management processes in relation to expenses and income of the organization is increasing.
• The validity and flexibility of decisions is increasing due to changes in the economic conditions of the company.
• The degree of reliability and trust in the structure on the part of the parent organization, investors and creditors is increasing.
• The credit policy of the company is optimized.

Key goal

The main goal of the payment calendar is to create a cash flow schedule for the coming period. As a rule, it varies from a couple of working days to a month. The schedule should be such as to guarantee the repayment of all current payments, minimize surplus money in accounts and, of course, prevent cash gaps.

Category Content

How to make a payment calendar? It is important to note that its content may be different. It all depends primarily on the preferences of interested employees and the specifics of the business. Nevertheless, it should include data related to receipts and disposals, as well as to planned cash balances (usually with a breakdown by source and day).

Payment Calendar Example

Using the table below, let's look at an example of this tool designed for an auto parts store. In order to make it convenient to perceive the information, the maintenance of the payment calendar is displayed for 5 working days, and not for a month period.

Name of indicator	In just a week	Day 1	Day 2	Day 3	Day 4	Day 5
The rest of the money at the beginning. weeks	39, 649	39, 650	50 835	–53, 029	–13, 650	53, 711
Positive flow	736 495	147, 299	147, 299	147, 299	147, 299	147, 299
Revenues from the sale of spare parts (including)	736 495	147, 299	147, 299	147, 299	147, 299	147, 299
Negative flow	712 379	136 114	251 163	107 920	79 938	137 244
These include the following categories: Rental fee	5359	5359
State duty to the judiciary	9660	9660
Cargo delivery	8732	8732
Employee salary	71 666	71 666
Software, office equipment, computers	29, 230	29, 230
Installation of an advertising sign	11 530	11 530
FL income tax	5190	5190
Maintenance and repair of cash registers	800	800
Payment for the supply of auto parts	531 626	106 325	212, 650	95, 693	53 163	63, 795
Security functions of personnel	2000	2000
Social Plan Contributions	12, 483	12, 483
Insurance	14, 400	14, 400
Banking services	2500	370	370	370	370	1020
Communication services	2505	2505
Household needs	1090	327	763
Electric Energy	3607	3607
Net cash flow	24 116	11 185	–103 84	39, 379	67 361	10 055
Balance at the end of the week	63, 765	50 835	–53, 029	–13, 650	53, 711	63, 766

Comments

Information related to the distribution of costs over time, one way or another, will help to find the most risky moments (in terms of the appearance of cash gaps) and implement measures to redistribute the burden of payments (for example, to distribute salary payments and transfer tax payments to the state budget for different periods), timely use the loan, etc.). So, in the above example, for the upcoming time period, it is assumed to receive a positive cash flow equal to 736, 495.40 rubles. The negative cash flow for the week is 712, 379.27 rubles.

Net Flow Calculation

So, the net cash flow will be equal to 24, 116.13 rubles. (increase in the balance from 39, 648.96 rubles to 63, 765.09 rubles). If you distribute the planned positive as well as negative cash flows in accordance with the days (based on the payment invoices that are issued, as well as the payment terms stipulated by the contracts), it turns out that at the end of the 2nd day the cash deficit will form, the size of which will be 53 029.35 rubles. In order to eliminate it, it is necessary to transfer part of the planned payments (for example, payment for purchased marketable products from suppliers or the purchase of office equipment, furniture) the next day. If this is not possible, you should use a short-term bank loan in the form of an overdraft.

Category classification

Let's analyze the main types of payment calendar. The most common form of a tool that is used in the operational planning of enterprise cash flows is considered to be its formation in the context of the following sections:

• The schedule of those cash receipts that are coming.
• The schedule of payments to be made.

If the planned type of cash flow is one-sided (exclusively negative or only positive), then the calendar is developed in the form of a single relevant section.

Among the main varieties of the tool, the following should be noted:

• Tax calendar. Such a planning document is drawn up for the enterprise as a whole. As a rule, it contains a single section called the “tax payment schedule”. Refundable payments on tax recalculations of money are included according to standards in the collection calendar of receivables. This payment calendar identifies the amounts of all types of taxes, fees and other tax payments that are transferred by the company to budgets of different values, as well as to extra-budgetary funds. It is worth noting that the calendar date of payment is usually the final day of the established period for the transfer of taxes of all types.
• Debt collection calendar. This type of payment calendar is usually formed by the structure as a whole, although if there is a specialized unit, in particular a credit department, it can cover the grouping of payments exclusively for this responsibility center.

Other species

In addition to the above, there are the following varieties of the category:

• Calendar for servicing financial loans. According to current international practice on reporting and forecasting cash flows, servicing such loans is reflected in the operational work of the enterprise, not financial.
• Payroll Calendar. Such a tool is developed, as a rule, at enterprises that use a multi-stage schedule in respect of salary payments to employees of various structural units (departments, branches, workshops, etc.).
• The calendar (budget) in which inventories are formed is developed according to the standards for the respective cost centers, in other words, for certain structural units that implement production support in the material and technical plan.

Management Cost Calendar

Another kind of tool is the budget (calendar) of management expenses. It should be noted that in its composition are reflected:

• payments related to the purchase of office supplies;
• office equipment and computer programs not included in non-current assets;
• payments for postal and communication costs;
• travel expenses;
• other articles related to enterprise management.

It is important to note that the exception here is the cost of labor of employees who carry out professional activities in the administrative department.