Why we developed this service:
Cashflow planning is critical to the survival and growth of any business, without establishing targets for the year you will be flying blind.
We find that our most successful clients are those who’ve set targets each year and monitor their results on a regular basis. Our team want to help you to set, monitor and manage financial targets and improve business performance.
A Cash Flow Forecast will set monthly financial targets and provide you with a monthly breakdown of all of your income and expenses for a minimum 12 month period. This enables you to regularly measure actual results against budget so that you can respond to any change in your business, and have control over your cash flow.
Who should use this service?
If you don’t have a current Cash Flow Forecast in place, then we recommend this service for you.
When should this service be used?
An ideal time to have a Cash Flow Forecast prepared is prior to commencing a new financial year. However, it can be done at any point during the year and we recommend that you put one in place as soon as possible to gain control of your cash flow. You may also be required to provide one for finance applications to banks or for lease agreements.
What is involved?
We will develop a Cash Flow Forecast proposal unique to your situation, based on discussions with you around target setting and the objectives you’d like to achieve. On acceptance of the proposal, we’ll ask you to complete a questionnaire and submit this with your last year’s financial records (if we don’t already have them) in order to develop your draft Cash Flow Forecast.
We will then arrange a meeting to review the draft forecast with you to discuss and finalise it. You’ll receive a copy of your Cash Flow Forecast that can be uploaded into your own accounting system and used for finance applications.
Benefits of Cashflow Forecasting:
- Sets appropriate goals and targets and monitor/maintain your cash flow on a monthly basis
- Helps you understand the key drivers and therefore better understand your business
- Gives you peace of mind and control over your cash flow
- Monitors and assists with your bank lending requirements and lease agreements
- Identifies how much you need to set aside for tax
- Forewarns you of potential cashflow issues to manage and reduce the effects
- Helps you identify inconsistencies in trading
- Distinguishes between your monthly and annual business operation trends
- Alerts you to potential creditor hassles
- Helps you avoid costs associated with non-payment/late payment, i.e. penalties, interest and potentially sour supplier relationships
- Is a timely method of monitoring and evaluating your performance
- Clarifies how much revenue you really need to achieve the profits expected
- Encourages you to be accountable for goal achievement
- Helps support the development of your business strategies
- Provides continued direction and motivation for your Team
- Determines the future direction of your business and helps realise potential