It’s the beginning of a new financial year so let’s get you thinking about the leaky tap that is your cash flow and how to stop living on a day by day, “Will I have enough to pay this bill ”, basis.
Planning via a cash flow forecast ensures that you will always have enough, no matter what your obligations, and will keep you level-headed when things don’t go to plan.
We urge you to do more than one as you are the best person to give the most accurate estimates for your particular business, and we can help you do this. Do a best-case and a worst-case scenario, that way you keep on top of your bills and know what your working capital should be. Then you can accept or reject new debts/opportunities as they come available.
Working on historical figures can only give you what happened in the past and is not pushing you to find ways to be more profitable and be present in your business now and into the future. We don’t have to tell you that your loan does not pay itself; you don’t get goods for nothing. Each business will be doing the same thing, trying to make ends meet and make a profit. It’s a never ending circle that you can prepare your business for.
Doing a cash flow forecast could put you in a better financial position than a comparable business that has not thought ahead.
Read more about a cash flow forecast and how it can help your business grow.