Business Expansion

Cash flow forecasting

Cash flow may sometimes be seen as the Cinderella of business finance, often pushed to one side by a focus on profitability.

But businesses that fail to keep their cash flow under control are more vulnerable to failure and that’s a risk no business can afford to take.

We offer cash flow forecasting services that will allow you to predict likely peaks and troughs in your cash balance, by looking at all the sources and amounts of cash coming in, and the destinations and amounts going out, usually for a quarter or a year in advance and broken down into weeks or months.

We’ll work alongside you to keep your forecasts up to date to make sure that any warning signs are spotted early and you can act quickly to avoid real problems. We’ll also compare the real figures with your forecasts, as they become available, to monitor your performance.

Making cash flow forecasting part of the way you do business will help you to anticipate – and prepare for – potential cash shortfalls as well as keeping you up to date on when you may have the assets necessary to take on extra business.

This financial data will help you to plan your future funding requirements and support applications to lenders. In fact, many banks require such forecasts before considering loans.

By taking a close look at your cash flow, we can also help you to keep better track of your finances and make them work harder for you. For example, tightening up on credit control and paying your suppliers on time, but not earlier, can have a positive effect on your cash flow.

You can also learn some valuable lessons about the clients you need to be careful with and the suppliers that are most co-operative.

For more information on how Harris Lipman can help, please email InfoAccounts@harris-lipman.co.uk or call (020) 8446 9000.

 

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