Cash is King!!
#theaccountant #cashflowmanagement #Businessinsights
for many businesses cash flow forecasting is a complex and meaningless, in my opinion, it is mainly because;
- Not considered important –simply because the benefits are not known and not felt the need to monitor cash flows, this is high risk and usually happens when business is flourishing or funding is available.
- No idea where to start – if real-time information is not available and accounting is done retrospectively so often businesses have no clue where to start from.
- In-consistency & lack of resources– it is not done regularly either because of lack of resources or time and outsourced solutions are costly.
Cash flow forecast, if done properly, can help businesses, especially small & medium-sized in many ways here are few examples;
clarity on cash position;
Rather than juggling with the numbers in your head, you have everything written down, what is expected to come in and what is expected to go out over the given period of time.
better decision making;
Cash flow forecast is a planning tool, and it can help plan for future in a better way for example with the expected cash position and clarity on the incoming & outgoing you can plan on;
- taking on more staff,
- launching or discontinue a product,
- pitching for new contracts and so on.
There are many other features of cash flow forecasting such as monitoring expenses and income, staying up-to-date with business performance etc.
Final Thoughts
It is not difficult to forecast cash flow, a simple excel worksheet can help, in fact, use of cloud accounting had made it even simpler and cost-effective. A regular cash flow forecast can help you put your focus back on business development and make the best use of your time.
A very simple & basic cash flow forecast you can download here https://theaccountant.ae/ get in touch +971505025594 to save cost and time and for a seamless solution.
