Cash Flow Forecasting
Every business should be planning for their future, which includes using cash flow forecasts to plan for costs and your income. Without the assistance of cash flow forecasts, your business will struggle to set targets, reach them and make a good profit every month.
Roger Hatherall & Co can provide every business with accurate and professional cash flow forecasting. To increase the chance of a successful performance for your business, you should always seek advice from our team.
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Budgeting Your Business
A big part of generating a large profit is through minimising the spending within your business. If you fail to do this, your costs will become out of hand and eventually outweigh your profit. However, to ensure you budget and spend the correct amount each month, cash flow forecasting is a great asset to use.
By using cash flow forecasting, you can estimate how much money you are going to make each month, allowing you to outline a budget on what you should aim to spend to make a good profit. Without this, you will be aimlessly spending, making it difficult for you to forecast how much money you actually have available to spend compared to what you actually spend.
Measure Your Performance
Ensuring your business performs how you expect will give you an insight into whether or not you need to make improvements. By creating a cash flow forecast, you can outline how you expect your company to perform in the near future.
Your actual performance can then be measured against what you expected. This way if you underperform, you can look at ways to improve your business and if you overperform, you can set your targets higher in the future to ensure standards do not drop.
Without forecasting what you expect from your own company, there are no expectations that can be met and you will not achieve the success you want.
Managing Costs & Income
Keeping the amount of money going in and out of your business can be difficult. However, with an accurate cash flow, this is something that can be monitored much more easily. Whether you are a big or small business, you should be managing how much money is going in and out of your business.
Although a cash flow forecast is often an estimate of how much your business should make, there are also figures that should be certain to go through. If you notice fixed monthly transactions are no longer occurring, you can easily spot any problems your business might be having. Making sure every cost you expect to go through is completed correctly.
If you constantly seem to spend or receive less than what your cash flow suggests you should, there could be a problem with fixed monthly payments or staff performance. Cash flow forecasts will identify these problems earlier to save money for your business.
Saving For Future Growth
Growing your business is something every business owner sets out to achieve somewhere down the line. Saving enough money to regularly make investments back into your business and improve your own company can only be helped through cash flow forecasting. As you can make an accurate forecast of money coming in and going out, saving money monthly becomes much simpler.
When you then decide to make purchases or hire new staff, you can monitor any additional costs in your cash flow forecast. This helps you control the money you will spend on all purchases and ensure you are in a good financial state to improve your business. If your cash flow shows that revenue will be lower in certain months, you know you must be tighter with money before looking to expand.
Contact Us To Find Out How We Can Help You With Cash Flow Forecasting
Having a cash flow forecast for your business all year round is essential for its success. If you would like more information on what we can include in cash flow forecasts or want help regarding all your business finances, contact our team. Roger Hatherall & Co can provide advice to all businesses in the Bath area, so call us now on 01225 429610.
