Cashflow forecast
Be prepared!
Encourage clients to plan for cash-flow needs by producing forecasts: and then compare actual results to the plan.
Benefits
It can help to identify if the owners have surplus cash (to invest?) and when they may need to borrow. And, as you know, banks, lenders and investors will often ask for them.
Quality assurance
We’ll make sure it links to the profit and loss and balance sheet. And we can help to monitor it against actuals.
What we can do?
And we’ll probably ask you about the following year and the year after that!
If you need help, we’re on hand-particularly for the trickier parts like VAT, tax and timing of payments to suppliers and from customers.
And we can help you monitor it against actuals.
How much is it?
Our fees can be agreed up front, but will vary according to how much we expect to do.
FAQs
How often should I prepare one? At least annually.
Do I need to know my starting bank position? Absolutely; but we can do a bank reconciliation, if required
What if I’m unsure what my receipts or payments will be? We can work though a profit and loss forecast first.
Key points
Key management tool
- Must be monitored
- Update at least annually