We did this interesting exercise - we collated the most popular questions we get when we discuss cash flows with clients and normal business people. Without further ado... 1. Should VAT be part of your cash flow planning/ forecasts? We say Yes, VAT payments on a quarterly basis can be killing for a business if not planned and put away in advance. As a norm, we always advise clients to consistently run a VAT report if your software allows it (Xero does) - at the least monthly.