Maybe you know that you should be, but aren't already doing a cash flow forecast? Nobody starts a business for the thrill of getting stuck in bookkeeping, paperwork or chasing customers for money. Still, every business faces cash flow difficulties from time to time, but cash flow forecasts remains the most under utilized secret weapon to date...here is our introduction.
In this session, we'll be sharing one of our visual aids that our VCFO's use when consulting with their clients around cash flow management and - forecasting. Let us know in the comment section below whether this has assisted your business in any way - we would love to get your feedback!
Daily cash flow analysis
Here are just a few key reasons why cash flow forecasts are important:
- Identifying potential shortfalls in cash balances
- Enable you to see when problems or cash shortfalls are likely to occur so you can plan to avoid them
- Ensure you have enough cash to pay suppliers and employees
A positive cash flow is essential if you want to generate profit. You need enough cash to pay your employees and suppliers so that you can produce your goods and services.
Luan van Rhyn is a registered Professional Accountant (SA) and Chief Dreamer and Founder of Calypso Accounting. Luan and his team are passionate about helping SME’s grow and streamline their businesses and are continuously looking for ways to help improve their clients’ bottom line.