Poor cashflow is the number one reason businesses fail.

Cashflow planning is best practice in any business and critical to survival and growth.

Setting targets and monitoring your actual cashflow against your forecast will enable you to predict large cash outflows and respond to changes in your business.

Whether your bank has requested a cashflow forecast or not, every business owner needs an understanding of cash and liquidity for better decision making.

Ideally a business should have a cashflow forecast in place at the beginning of the new financial year; however, you can prepare one at any time. Getting started is what is important.

What is a Cashflow Forecast?
A cashflow forecast outlines the income and outgoings of your business for any given period in the future, such as a week, month, quarter or financial year.

Cash Forecast

For each period it includes the following:

  • Your projected starting account balance
  • Your predicted income
  • Your estimated outgoings
  • Your projected ending account balance
  • Any money left over

Why do I need a cashflow forecast?
A cashflow forecast is important to your business so you can do the following.

  • Monitor your actual cashflow against forecast in your accounting or reporting software
  • Predict and plan for large cash outflows
  • Understand key cashflow drivers and your cash conversion cycle (the time it takes to convert investment in inventory and other resource inputs into cash)
  • Identify ways to avoid late payment penalties and interest
  • Improve your relationships with financiers and suppliers
  • Gain an understanding of cash and liquidity for better decision making
  • Have peace of mind that your cashflow needs are known and properly funded
  • Improve business processes to boost cashflow, profit and business value
  • Drive your business to achieving your goals in a managed way

How do I get started?
Helping our clients look ahead with confidence is core to our purpose as your accountant.We want to work with you beyond preparing a cashflow forecast.

Our Cashflow Management Coaching service has been designed to treat the underlying causes of poor cashflow - starting with your Cash Conversion Cycle.

Together we’ll conduct a thorough review of the potential causes of your cashflow challenges.We will set annual goals and devise a 90 day action plan for improvement and hold you accountable to implementing simple strategies to maximise cashflow.

Contact us today - the sooner we complete a cashflow forecast for you, the sooner we can work together to agree strategies for improvement.