Cash Flow Forecasting

 

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Why we developed this service

Cashflow planning is best practice in any business and critical to survival and growth. Setting cashflow targets and regularly monitoring your actual cashflow against your forecast will enable you to predict large cash outflows and respond to changes in your business.
Inadequate cashflow is a symptom of management problems in a business, NOT the cause. Helping our clients look ahead with confidence and putting in place basic cashflow maximisation strategies is core to our purpose as your accountants.

Who should use this service?

If you require a Cashflow Forecast because your bank manager has requested one, we can create one for you. However, this Cashflow Forecast service is fundamental as every business owner needs an understanding of cash and liquidity for better decision making. Recognising the difference between profit and cash, and the impact improving your Cash Conversion Cycle will have on your business is essential to managing and growing any business.

When should I have a Cashflow Forecast session?

Businesses should have a Cashflow Forecast in place before the beginning of the new financial year. Having said that, we can provide this service at any time.

The sooner we complete a Cashflow Forecast for you, the sooner we can work together to agree strategies for improvement.

What is involved

You will be requested to complete some pre-work to enable us to gather the information required to assist in preparing a draft Cashflow Forecast that is specifically designed for your business and situation. When will then have a review meeting with you to discuss the draft, make any amendments required and finalise the forecast.

After that, the Forecast will then be uploaded into Xero for monitor your actual progress against the forecast.

Benefits of Cashflow Forecasting

• Assists with bank lending requirements
• Identifies ways to avoid late payment penalties and interest from suppliers
• Improves communication and relationships with your financiers and suppliers
• Gives you an understanding of cash and liquidity for better decision making
• Enables you to predict and plan for large cash outflows
• Teaches you how to monitor your actual cashflow against forecast in your accounting or reporting software
• Provides peace of mind that your cashflow needs are known and properly funded
• Improves business processes that maximise cashflow, profit and business value
• Drives your business to achieve your goals in a controlled and managed way