Cash coming into the business will include cash sales, credit sales and interest on savings.

No sale is complete until the money has been collected.  When starting out in business avoid giving credit by asking for cash with order, a part payment up front to cover materials or cash on delivery until a good business relationship has been established.  Ensure the full costs including delivery charges and VAT is communicated beforehand. 

Accepting credit card payments may cost money to set up (talk to your bank about the procedures, equipment and software that you may need) and there will be a percentage taken by the credit card company on every sale.  A minimum sales value may be therefore be necessary.  However this method does offer the advantage of certainty of payment when using an authorised payment system.  It will be essential to take credit card payments if you want to accept orders over the Internet.  For further details on trading online see Achieving best practice in your business.

Separate cash sales and credit sales in your sales forecast to work out when the money will actually reach your bank account.  If your terms of sale are 30 days, expect that only a proportion of your customers will pay within this time: inevitably a certain proportion will be late.  On your cash flow spreadsheet include a factor for late payments, e.g. 40% within 30 days, 40% within 60 days and the remaining 20% within 90 days.