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