Cash flow forecasts will help every business understand the financial situation they are in. Whether you currently have a good, bad or average financial performance, cash flow forecasts offer several benefits and can always help you improve.
Coleman & Co can always create detailed cash flow forecasts for all businesses throughout the Lisburn area. We will cover all finances to ensure forecasts are accurate and beneficial.
Business Growth
At some point, all businesses will look to grow and improve their current situation and cash flow forecasts can give you the best opportunity to do this. Monitoring your cash flow, where the most money is being spent and generated, allows you to decide your future.
If sales are booming but expenses are too much, changes must be made. If you are looking to grow, but your forecast shows the same trends, this is not a good sign. By either budgeting more effectively to reduce costs or improving revenue, you have a better chance of growth. Forecasts will help you identify what changes should be made, so all decisions are calculated.
Compare Business Performance
Many businesses can grow very quickly in their first few years, however, growth can stutter after this as you intend to get bigger. If you have noticed a recent decline in your business performance, comparisons can help you develop. There is usually a reason for performance drop and finding a quick solution is always essential.
If an increase in expenses has occurred, checking the history and amount of every transaction can find the problem. If some payments are unnecessary, your cash flow forecast will show the impact reducing these costs will make. Once planned and compared, you can make the decision of whether the change is actually required.
Create Targets
To motivate your staff effectively, creating targets and goals for them and your business is essential. Cash flow forecasts can help you set the targets you need. By identifying what you expect your business to do and the realistic targets you have set yourself, your business must be motivated to achieve these goals.
As with every cash flow forecast, you can see the revenue and expenditure you expect over the coming months. If you identify that a section of your business needs to spend less or generate more revenue, this target can be set immediately once cash flow forecasts have been created.
Record Keeping
Not only is record keeping of your financial transactions and tax returns a legal requirement, but it also benefits your business. Bookkeeping of every transaction within your business should be kept for a minimum of 6 years in case these financial details are required in the future. They can also be used to help you identify past problems in your business.
If you keep records of your cash flow forecast and the actual cash flow you achieved, this can improve your future forecasts. If you notice problems between real life and the forecasts, forecasts can be changed to be more accurate. Targets can also be set to help you achieve the forecasts you have created more easily.
Keeping a record of all your previous cash flow forecasts is the best way to improve in the future. Every transaction should be recorded to create more accurate cash flow forecasts to improve business performance.
Spot Payment Problems
If you think your cash flow should be better than what it is, there a chance you aren’t getting the payments you expect. By regularly checking your cash flow forecast revenue against the money you are actually receiving, you can easily spot any payment problems that aren’t in line with what you expect.
Without cash flow forecasts, these errors could easily occur and become quite frequent throughout your business. Staying on top of these errors will ensure the right payments always come in to match the cash flow you expect and there is little risk of your financial performance dropping due to minor errors.
Contact Us
Coleman & Co can generate detailed cash flow forecasts for every business throughout Lisburn. If you would like information regarding our service or advice on cash flow forecasts, contact us today. We are happy to answer any enquiries from any businesses no matter what services you need. Call us today on 028 9266 3599 or fill in our contact form.