Whether you’re a small business startup, or an established medium size business, cashflow forecasting and management is detrimental to the overall operation of your business. Making sure you have enough cash coming in to cover your running costs seems simple, but in practice, dealing with untimely customers and suppliers and can be daunting.
What is a cashflow forecast?
A cash flow forecast is designed to predict your cashflow for an upcoming period. It is made by estimating your businesses’ incomings and outgoings, primarily your income and expenses. Cash flow management is important because at the end of the day, we all need a little money in our pocket!
As a business owner, you need to ensure that your business is able to meet everyday commitments – whether it’s stocking up on Australia Post bags, meeting the rent for your premises, or paying your staff. While it’s not an exact science, a cashflow forecast can help you to plan for the future, and it is an important consideration when it comes to goal setting.
Cash flow management strategies
We like to think our cash flow management services are a little special. At Growth IQ, we don’t just tell you what to do – we walk you through each scenario. We help you understand not only how to prepare a cash flow forecast, but you how to understand your overall business numbers. Our expert team at Growth IQ:
- Forecasting numerous scenarios to provide a clear picture about cash position for any given situation
- Put safeguards in place to mitigate any risks well in advance
- Use modern software to present a clear picture
We love graphs! Taking the time to ensure you understand every aspect of your business is important, as it ensures you know where you stand, and what your position could be. Our software enables us to work as though we have a crystal ball, presenting a 360 degree view of your business! Cash flow forecasting and management reduces risk, helps to maintain your liquidity, and ensures you streamline your processes to make business outcomes as predictable as possible.