Keeping your Business Alive
What’s your
strategy to keep cash flowing through your business?
High sales and
consistent profits are great aspects to have in your business, but without cash
rolling in regularly you won’t be able to pay your suppliers, staff, even
yourself! Give yourself some security by preparing a Cash Flow Forecast for
your business.
What is a Cash Flow Forecast?
A cash flow
forecast is a projection of all of your income and expenses for your business
over the next 12 months, with an emphasis on when the cash from the income and
expenses will be received and sent. This includes when your income locked up in
Debtors will be received and when your Creditors will need to be paid.
Once you prepare
your 12 month cash flow forecast you will be able to spot weaknesses in the
year and plan for it. By taking a proactive approach and planning ahead means
you can start making changes now to help you through those tight periods, such
as introduce tighter credit policies with your customers or acquire a line of
credit to help you through the period in the future.
What’s even
better is banks love them! Are you looking to lease some new equipment? If you
are looking for finance it’s going to be easier for the banks to approve you if
they can see you have capacity to make loan repayments.
Would you like
security in your business this year? Are you interested in preparing your own
forecasts for the year? If you would like Jacoby Cameron & Co to prepare a 12 month cash flow forecast for
your business give us a call or send us an email.
