Cash Flow Forecast

Cash Flow Forecast

My Great Bookkeeper wants to help your business succeed. What better way to do this than with a cash flow forecast to help pay your bills and expenses on time.

Cash flow forecasting helps you manage your business finances better. Do you know when you can afford to buy that new car you’ve wanted, or that new piece of equipment your business needs? Just because you have cash in your bank account does not mean that you have the money to make that purchase! You must ask yourself questions like:

  1. Have you totaled up your bills payable?
  2. Are you aware of what outgoings are coming up?
  3. Do you really anticipate your customers will pay your sales invoices on time, and what happens if they don’t?

The cash flow forecast shows the business’s future financial position and is an important planning tool of financial management.

Cash flow forecasting shows you when more cash is going out of the business than in. This is often done in combination with business budgeting. They can help your business:

  • Reach your sales targets.
  • Avoid serious financial problems.
  • Tell you if your business has enough cash to run.
  • Tell you if you can afford to purchase capital costs.
  • Tell you if it is time to expand.
  • Used for lenders who need to know the capacity the business has to pay the loan back.

The cash flow forecast may be derived from; balance sheet, profit and loss, and budget.

A cash flow forecast is the process of obtaining an estimates from operating activities and dates those estimates will be incurred to predict the future financial position. 

We Can Help With Your Cash Flow Forecasting and Bookkeeping

If you want assistance managing your business bookkeeping and financial obligations, we are here to help. My Great Bookkeeper provides a full range of bookkeeping services including Cash Flow and Business Budgeting.

Contact us now for a free 30-minute chat about how we can help grow your business.

For Bookkeeping and BAS related support