What is the benefit of a Cash Flow Forecast?


Sometimes in business the movement of cash can get quite confusing… The bank balance looks OK but you’re never really sure how much of it is yours. There’s taxes to pay, outstanding supplier invoices and monthly charges. A Cash Flow Forecast plots it all out in black and white for you to see exactly what will be your cash position at the end of each month, week or day (if cash is really tight). It eliminates the guesswork so you can feel confident about your cash position. Once you’ve plotted it all out, it puts you in a position to then plan a strategy to keep it under control i.e. when to speed up money coming in and when to slow down money going out.