The Art & Science of Cash-Flow Forecasting. Part 1
Date
The Art & Science of Cash-Flow Forecasting. Part 1
For Busy Bookkeeping Eastern Suburbs one of milestones we strive for everyone of our clients is a regularly updated cash-flow forecast. No financial tool is more powerful in assisting business owners and managers in understanding and maintaining the health of their businesses. Without the foundation of a Cash-flow forecast and longer view Budget Forecast there is not the same level of confidence in strategic and tactical decisions.
What is cash forecasting and why do we value it so much?
A cash flow forecast is an important tool for any business. A cash flow forecast is an estimate of the amount of money expected to flow in and out of your business. Preparing a cash flow forecast will identify whether your business has enough cash to run your business now and in the future. This investigation will highlight potential shortfalls in your cash balances ahead of time. This is valuable information for your business and can allow you to confidently make informed decisions around financing, purchasing new equipment purchases, growing your staff, improving margins et al
A Deeper Appreciation.
At the best of times, cash flow forecasting can be tricky, and as companies now feel the economic impacts of COVID-19, improving cash flow management is front and centre. Resource scarcity, turbulent financial markets and a general sense of economic uncertainty have given rise to the urgent need for companies to effectively – and cautiously – manage their cash. As such, accurate cash flow forecasting today has become more important than ever, yet at the same time, it has become even more challenging to undertake as a result of high levels of uncertainty.
Contact us today to discuss how we can organise a regular cash-flow for your business – so you too can experience the transformation it brings.
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