Lack of ‘cash’ in a business is one of the main reason businesses go under.
Staying focused the direction and future growth of your business can only be achieved with effective cash-flow planning and budgeting. Many business owners focus on profit. Profit is secondary – it’s cash flow that really matters.
With cash-flow being so important, failing to forecast accurately can put your business in jeopardy, making it vulnerable to future cash pitfalls. However, if you’re still not convinced your business needs a cash-flow forecast or if you’re not quite sure what it really involves, here are the crucial benefits a cash-flow forecast can have for your business.
Anticipate cash surpluses and shortages
See how hypothetical scenarios will affect your cash-flow
Monitor how much you’re spending and keep to your budgets
Know when you can take drawings
Ensure you can pay your suppliers on time
Witness the effects of late payments and credit control
Reduce risk with more informed decision-making