Cash Flow Forecast and your business

A healthy cashflow is one of the most important assets your business can have.

It is always best practice to have a clear cashflow forecast as it helps you plan for growth and prepare for adversity. Done correctly, a cashflow forecast enables you to formulate the best plan for your business.

What Can a Cashflow Forecasting Help With?

  • A cashflow forecast facilitates informed current decision making by providing a future view of your cash flow based on what you “know now” and “calculated predictions” of future revenue and expenses.
  • You will be able to use the clear view a cashflow forecast affords you to formulate the best plan for your business, by giving you a good idea of the cash you will have available to invest back into the growth of your business.
  • Giving you a working knowledge of what your cashflow will look like for any timeframe that works best for your business. Typically, a cashflow is based on a 12-month forward view, but we can tailor it to 6 months, 5 years or whatever timeframe works for you.
  • Once you have a cashflow forecast you will be able to spot trends in sales or expenses which can then be planned for.
  • Equally, a cashflow forecast can highlight any “crunch” points in the future where you may need to arrange for extra financing to cover a short period.

What If Things Are Uncertain?

A key benefit to cashflow forecasting is that once you have a forecast in place you can “flex” this forecast by changing sales forecasts or expense predictions to look at what could happen if a certain course of action was to occur. This is called “scenario planning”.  Being prepared for various scenarios takes away the element of surprise and gives you the power of control over the “what ifs” in your life.

Decide the best way to predict future cash streams (i.e. % growth, average of a set past period as a prediction or some type of financial modelling): talk to us about it to find the best structure for you. 

What do you need to do to prepare a useful Cashflow Forecast?

  • Accurate information –  If you are going to rely on the insights a cashflow provides you must make sure you do it properly. The information you input must be accurate or you may as well reading your tea leaves!
  • Up-to-date Bookkeeping – That precise information comes from bookkeeping that is religiously updated and executed correctly


When it comes to bookkeeping, you need a comprehensive and reliable accounting system to eliminate mistakes and to be flexible enough to offer various scenarios while you are making important decisions. We use Xero and Receipt Bank to give up to date bank information and expenses.

So, what are the benefits of having us do your Cashflow Forecast?

  • Frees up your Time – Ask yourself how much longer it will take you to create your own cashflow forecast? Isn’t that time better served on what you do best, developing your business?
  • Peace of Mind – You know you should be doing a cashflow forecast and that it is crucial to the development of your business. Imagine how much better you will feel when you have a clear path defined for the future of your business and the confidence that you know what your options are when situations change.
  • Financial Control – Cashflow forecasting is all about control. Knowing clearly what your options are and that you are prepared for the worst, even as you plan to fulfill your business dreams, will give you the confidence to make it possible.
  • We are experts – This is what we do. We will be able to flag weak points and help you exploit opportunities that your forecast will show up.

Want to Hear More from Us About Cashflow Forecasting?