Cash Flow Forecasting
Cash flow forecasts are essential for every business to have a successful plan in the future. This can be a great tool to identify financial problems and make sure your financial performance continues to improve.
Roger Hatherall & Co can provide cash flow forecasts for all businesses in Bath and the surrounding areas. If you require cash flow forecasts and reports, our team will always be available.
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Understand Cash Flow Trends
If you notice your business has expenditure and income that fluctuates and you don t understand why, cash flow forecasts can help you understand these trends. With a cash flow forecast, you can identify what costs are causing your business problems and when these issues are occurring, allowing you to find a quick solution.
This can also give you an insight into what changes should be made and whether you need to cut costs to prevent finances become a large issue. By creating a cash flow forecast, you can monitor trends every month to slowly flatten out any problems.
Growing Your Business
It is difficult to grow your business without using the help of cash flow forecasts. Without forecasting, you will not have a good understanding of your financial performance as well as what your performance will look like in the near future or over the next business year.
To effectively grow your business, you must make a plan that allows your business to make a healthy cash flow every month. If your cash flow forecast shows this is not going to happen, you can identify where changes can be made and how long you should save for before growing your business.
History Comparison
Whether you are making more money than you know what to do with or you are struggling to make a profit, you should always have comparisons between future months, your current month and your history.
By making comparisons, this will give you a good understanding of where your business may be struggling or excelling. This gives you the platform to invest more money where your business is successful, whilst limiting your spend in areas which are leading to a negative cash flow.
Additionally, if your business has significantly dropped or improved in financial performance, this will help you evaluate where the improvement has come from.
Evaluate Your Options
Understanding the costs and income of every area of your business is important to improve your financial performance. A cash flow forecast helps you identify where your business is making the most money and therefore what changes need to be made for a more successful financial performance. This could include changes in:
- Premises
- Prices
- Resources
- Staff
- Suppliers
Whilst there are many other changes that could be made, these are some of the most influential areas that could help cut costs and lead to higher profit margins.
Forecasting Over Failing
Every business wants to stay afloat and this can be very difficult, especially in your first few years of trading. Completing simple cash flow forecasts will reduce the chance of this happening as you should always have a good understanding of financial performance and what changes need to be made.
Roger Hatherall & Co can create cash flow forecasts for all businesses in Bath and the surrounding areas, as well as providing any advice you may require. Call us today on 01225 429610 or fill in our contact form to make an enquiry.
