Cash Flow, as any business owner knows, is the life blood of any business and cash flow management and control is vital whether you are a start-up new venture or have a long trading history.
If your business is new and cash is tight, then forecasting will improve the businesses cash flow. If your business is cash rich, then forecasting is still just as important to protect the cash reserves built up.
For a new business start-up cash flow forecasts should play a major part in your business Management Information (MI) and planning and will no doubt be required by shareholders and/or investors.
At the very least it will convey you as a serious entrepreneur, who is not just looking at a decent year end bottom line result, that you will not achieve because you will run out of cash in month 9. These realities apply to well-established businesses in equal measure.
More importantly incorporating Cash Flow Forecasts as part of your overall accounting procedures could save you money, by adapting as required, planning ahead and avoiding cash flow difficulties and the associated risks.
At ABK we can produce and update Cash Flow Forecasts to suit your business requirements, either standalone forecasts, or as part of a periodic accounting system. Whatever your business model or cash flow position, here at ABK we can help produce and manage accurate cash flow forecasts to assist you controlling and growing your business.