Cash flow forecasting

In business, “cash is king”.  Cash flow is the life-blood of all businesses – particularly start-ups and small enterprises.  As a result, it is essential that management forecasts (predictions) of cash the flow is done to make sure that businesses can survive. Many businesses do not have the knowledge or time to do this. They approach us to do this on their behalf.

Here are the key reasons why a cash flow forecast is so important:

Identify potential shortfalls in cash balances in advance
To ensure that a business can afford to pay suppliers and employees.
Spot problems with customer payments
An important discipline of financial planning.
External stakeholders such as banks may require a regular forecast.