Cashflow Reporting & Budgeting

Do uncertainties caused by COVID make it difficult to budget your business financials? Does your bank need a copy of the budget/cashflow forecast before approving a loan? Do you need to understand the impact of plans and possible outcomes in the future?

Cash is king! Financial forecasting can help your business use the cash it has on hand to grow and manage debts. Making a good profit does not simply mean that a business has the cash it needs to survive or grow. Quite often, poor cash flow is treated by accessing debt or personal funds, both of which will likely only temporarily relieve pressures. Cashflow reporting can provide more clarity on how things can be improved.

How We Can Help With Cashflow Forecasting

A good cash flow forecast is an investment that business owners use annually as part of their business planning. However, the most successful business owners take this a step further by loading it into their accounting software to use as a monthly tool.

Mapping the cash coming in and going out of your business will help you identify if your business will run out of money before it happens.  A comprehensive forecast should always include:

  1. Budget,
  2. Cash Flow forecast, and
  3. Forecast balance sheet.

These statements help business owners understand where their business is going and what they will look like financially when they get to the finish line.

In the COVID environment, we have seen banks requiring a copy of budget and cashflow forecast prepared by an independent Chartered Accountant as part of the information for loan approval.

In addition, tracking your business’s progress and measuring goals increases accountability. This can be a daunting or confusing process so you may wish to consider working with an independent person or financial advisor to discuss your financial results at regular intervals during the year.  We can help you understand the three big financial statements and work alongside you to develop measurable goals to ultimately produce more cash and greater efficiency in the future!

If you would like to know more about Management Reporting, click here.

Need Assistance With Cashflow Reporting Or Budgeting?

Want to know how you can keep your business profitable or increase your income? Get in contact with our team, who can prepare management accounts to help guide you to running a successful business!

Refer to our people for more information on who we are, our experience and how we can help.

We offer a no obligation 30min free consultation where we can discuss:

  • your business financial position and performance;
  • highlight issues and opportunities; and
  • how we can add value and assist.
Book a Consultation