Being unaware of how much you spend and how much you are making is not a good position to be in as a business. So with cash flow forecasting from Coleman and CO you can plan for all your future finances and understand all the benefits!
Coleman & Co are experts with all finances and can prepare your business for each month of cash flow. We will provide for all your forecasting needs with a team of expert accountants and provide detailed reports at times when you need them most such as taxation periods and end of year accounts.
Spot Problems With Customers
When creating a cash flow forecast, we will find out how often your customers make payments towards you and of course how much they pay. This means every month, you will know exactly how much money is being pumped into your business and how much you have to spend. But what happens to those customers who aren’t paying regularly?
A cash flow forecast is the best way to check which customers are paying and which ones are not, so you can run your business better knowing which customers to get in touch with over missed payments. Even if your customer is making payments, but over or under spending, you can get to the root of the problem much quicker and easier with effective cash flow forecasting.
Never, Ever Overspend
The whole point of forecasting is to make sure you are financially stable at all times– your costs should never outweigh your revenue in a month, quarter or year. Your cash flow is always viewable whenever you need it and we can create budgets for your company as well, to ensure you are always keeping profits high. If there are certain points of your business that you are worried about, you can check them quickly with cash flow forecasting from Coleman and Co.
It is important to include every piece of detail about your expenses when it comes to setting up a cash flow forecast, this should be:
- Bills e.g. rent, lighting, heating, broadband
- Any other outgoings
Everything must be put in to create an accurate and reliable forecast that you can work with to understand how much you should spend every month. Fixed rate payments such as your bills are expected to stay the same, however, your other expenses must be monitored based on what you need and what you are likely to spend. Our team will ensure these payments do not go unseen and that they are taken into account for your forecast.
Expand Your Business Appropriately
Expanding a business takes time and a whole lot of hard work. We aren’t saying that using a cash flow forecast automatically means you can expand your business, but by having an idea of how much money you can spend a month, you can look at various ways to expand and meet new customers.
Expanding doesn’t just mean your business targets new regions, although this is something you could do, however there are other options as well:
- Sell A New Product – This could appeal to more and new customers and drive more traffic to your business.
- Employ More Staff – Whether this is salesmen, someone to provide the service or both, you can get through more work and reach more customers with an increase in staff.
- Move into Bigger Offices – Starting a company is not easy and often you do not have the facilities you would like. Working in newer and bigger offices is a great way to start expanding your business.
- Invest in New Equipment – Again, you may not have all of the best equipment you would like. Investing in new equipment can help you create work of the highest standard so more customers are impressed with your work.
You can rest assured knowing you have the spare money to invest back into your business and take it to new heights. This doesn’t mean you should begin to over expand. Make sure to keep your head as close to the ground as possible and with the help of Coleman & Co, we can make the right decisions with you.
Be Open To Changes
Especially if you have just started a business, steadying the ship when things might not be going so great can be difficult to do. If you are only making a small profit, which might not be enough to keep your business going, then cash flow forecasting can help you see exactly where your problems are and what needs to be changed.
‘By cutting your expenses by 10%, you can increase your bottom line profit by as much as 50%’ according to INC.This shows by just looking at where you are spending a bit too much money and being open to change the way your business works, your company could begin to boom.
Cash flow forecast has so many benefits to your business and will allow you to stay in control of all your company’s finances. With Coleman & Co available to offer support for every industry, we are the best accountants for you. for more information, get in touch today on 028 9266 3599.