Cash Flow Forecasting

Access to cash is critical, because “Cash is King” and “Cash Management is Queen”

Cash flow forecasting is vital for the operation of any business.

We can assist in the production of detailed forecasting, which will highlight any areas of concern and which in turn, enables a business vital time to react to a potential issue.

To keep your business healthy, you need to understand how much cash is coming into it and to ensure that your outgoings are comfortably lower than your cash incomings.  Cash flow forecasts help you do this, allowing you time to identify periods when you need more funding.

For instance, it might be that a large item of equipment will need to be replaced in six months’ time, but from the forecasted report you see that this cannot be funded from the reserves of the business.

This will allow you to approach a lender well in advance of when the equipment needs to be acquired and agree the finance.

A cash flow forecast can identify problems with regard to expenses and other items that the business has to pay out for, thus identifying areas where further controls can be implemented to improve your overall net position.  It may also highlight the effects that poor paying customers are having on your cash reserves.