When you buy goods or services on account instead of paying cash there and then, the suppliers of these goods and services are your creditors until you pay them. Enter in your cash flow forecast the payments that you will make to your creditors (including VAT) in the months in which you will pay them.
Your creditors might be:
- suppliers of computer and office sundries
- specialist external consultants whose services you use from time to time
- self-employed freelancers who invoice you for work done
- publishers of specialist tax and accountancy reference material
Generally suppliers allow their customers credit of 30 days. Some firms, such as publishers, may be prepared to allow monthly payment terms for subscriptions.
You might also agree with clients that you will pay various expenses, or disbursements, on their behalf, and you should enter these amounts here. Bear in mind that you may not receive reimbursement from your client until some time later.