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Cashflow forecast

Cash flow
management

Stay ahead with strategic financial forecasting

Continuous updates with Rolling Cash flow forecasts

Comprehensive cash flow statement reports for insightful analysis

Detailed P&L and balance sheet reports are needed to gauge financial health and early identification of potential cashflow challenges.

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What is a cash flow forecast?

A cash flow forecast is your financial guide, tracking money in and out and predicting future movements. It offers insights into your business, detects trends, and aids in planning for potential borrowing.

Understand the impact of sales, purchases, and daily costs on your bank balance for sustained financial health.

Preparing a three-way cash flow forecast

Profit and loss, balance sheet, and cash flow data are all brought together in three-way forecasting. This data combines your assets and expenses to create a complete picture of your cash flow numbers. This allows you to create financial forecasts that explain the prospects of your business model - exactly what any bank or investor will be looking for if you need financial assistance. .

So, how does cash flow interact with your profit and loss statement and balance sheet, and how can you get the most out of your financial forecasting and future planning by combining all three reports?

Understanding your profit & loss (P&L)

Your profit and loss statement (P&L) displays the revenue, costs, and expenses that come in and go out over a given period. It is a report that tells you whether or not your company is profitable. However, how will you know how much cash you have available at any given time if your company sells multiple products with varying turnaround times? Wages, payroll, VAT, corporation tax payments, and other overheads may soon complicate the situation!

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Speak to our specialist cash flow management Accountant.

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What is my balance sheet telling me?

It reflects your assets, liabilities and equity at a given point in time. In essence, it is a snapshot of what your business owns, what it owes, as well as the amount invested by its owners, reported on a single day. A balance sheet will tell you what your business is worth at a given time.

Monitoring cash flow keeps you ahead of the game

We can advise you of the peaks and troughs in your cash flow. By mapping out your expected cash movements of each business element, we can help you plan for the future. Example: A good year’s results may lead to a higher-than-expected corporation tax bill.
We can include payments in the cash flow projection for the following year. Our tax advisory team will also look at ways to minimise your tax bill.

Reducing cash flow risk during business expansion

Any expanding business will have greater demands on cash flow as more and more cash is tied up in stock and debtors. This is technically called 'overtrading' and presents a cashflow management risk to many businesses, especially those that expand quickly after a recession period. We can provide advice and make recommendations that will allow you to control the risk as you maximise the returns to your business.

Why cash flow management is important
– an example

Goods received in warehouse

payment made to suplier

Customer order and goods sent out

Income received from customer

Why choose us?

We can provide an accurate and comprehensive cash flow forecast to secure your future or support funding/loan applications.

We have the experience, accreditation, and know-how to help our clients’ businesses. Our experts will sit down and discuss ways to save money and free up cash flow. As a result, we can improve your company’s efficiency and profitability and make you more appealing to investors.

Combined with our extensive 30-year experience, we can spot early cash flow issues and recommend solutions.

Our service includes:

Cash flow forecasts – a rolling cycle to optimise cash

Adjustments to regulate cash flow

Set financial targets

Adjusted cash flow forecasts

Forecast profit levels and cash flow requirements for management and other sources of finance

P&L and Balance sheet reports

Cash flow statement reports

Stock management

Our accounting software partners

that will grow your business

Simple, smart accounting software and expert support.

Manage your expenses.

Power through payroll.

Bring in your bank data.

Stay on top of taxes.

Accounting software for a healthy business.

Real time snapshot of your finances.

Claim expenses.

Quotes and invoices on the go.

Submit VAT returns online.

The whole package for small businesses:

Master your cashflow.

Record expenses and mileage.

Send invoices and payment reminders.

Quick access to financial reports.

Profitable and powerful with better data and insights.

Increase productivity.

50% more client capacity.

Stay on top of business finances.

Capture, upload and track your cashflow.

Frequently asked questions about

Cashflow Management

Why is cash flow important for businesses?

Cash flow is important for maintaining liquidity, meeting financial obligations, and continuing operations, ensuring the business remains solvent.

What are the components of cash flow?

The components of cash flow include cash inflows, generated from business operations, investments, and financing activities, as well as cash outflows associated with expenses and investments.

What are the consequences of poor cash flow management?

Poor cash flow management can lead to cash shortages, missed payments, inability to cover expenses, damaged credit, and even business failure.

What tools or strategies can help with cash flow management?

Cash flow forecasting, budgeting, using accounting software, implementing cash flow policies, and establishing emergency funds are effective strategies for managing cash flow

Is cash flow a profit?

No, cash flow and profit are distinct financial metrics. Cash flow refers to the movement of money in and out of a business, while profit reflects the difference between revenue and expenses.

Is cash flow a budget?

No, cash flow is not a budget. Cash flow refers to the movement of money into and out of a business, while a budget is a financial plan outlining expected income and expenses over a specific period.

Still have questions?

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