📊 Project Cashflow Report Vs. Financial Cashflow Statement📊
Dear BIVILLEPM Community,
There’s a stark difference between a project cashflow report and a financial cashflow statement. All these breakdowns as investment activities, financial, and operating activities don’t exist in a project cashflow report; it’s all as inflow and outflow for the project. When you use the codes of account, then you start having an idea of the information you are getting and how valuable it’s to a CONTRACTOR Project how it can be analyzed from different perspectives cost categories.
I don’t think Majors like NLNG and Shell need such; it’s only the “Agbero-Contractor” like some of us needs it. You can be under budget (positive) and still run out of business and out of cash, and the project will still get terminated. Your EVM will still fail you. 🤷🏽♂️
All these; “when you complete a milestone and I will pay in the next 90 days+ has wrecked many EPC companies.” They have used the last money from the first milestone to buy Range Rover Sport instead of waiting to be sure of positive cashflow. 😂🏃♂️
And they now have to get a loan at “40% interest per annum” for the rest of the project. Actually, the only loan we should get is during contract awards and not in the middle of the project if our estimates at bid stages are right and our team are anticipating all the Project Cashflow at exact time payment should be made. ✊🏻
Delve into the nuances of cash flow management in project-based industries with a focus on comparing the Project Cash Flow Report and the Financial Cash Flow Statement. Explore their unique features, benefits, and best practices for effective implementation.
Image By #GeorgeNWOGU from GPT AI
Image By #GeorgeNWOGU
#ProjectCashFlow #FinancialCashFlow #CashBasis #AccrualBasis #Comparison #FinancialReporting #ProjectManagement #Cashflow #Contractors #NLNG #Shell #EVM #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
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