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Every type of business will benefit from having cash flow forecasts in place, even those that are very small or newly launched. In this blog we’re explaining why keeping track of your cash flow is so important and how TreyBridge Accountants can support you. 

Preparing for times of uncertainty 

The last few years have taught all business owners that unexpected and unprecedented scenarios are not only possible, but more than one of them can happen simultaneously. Just look at the last five years – Brexit, the COVID-19 pandemic, global supply chain delays, the energy crisis, the Russia-Ukraine war and a significantly increased cost of living have overlapped to massively disrupt all kinds of businesses. 
 
Being prepared for any eventuality can be hard work but it always pays off, as it helps business owners such as yourself to plan for whatever the future may bring. By having in place a regularly updated cash flow forecast, a contingency fund and an adaptable financial strategy, you can keep on doing business even when unanticipated events occur. 

Planning for periods of growth 

On a more positive note, cash flow forecasts enable you to plan for sustainable growth in a more efficient and confident manner. Understanding your revenue, expenses, net profit, tax liabilities and other monetary considerations means that you gain a clear picture of where your business stands financially. This makes periods of growth easier to plan, manage and sustain, which can lead to amazing things. 

How to budget effectively 

Budgeting plays a core role in cash flow management and forecasting. Rather than assuming that all of the money coming out of your business is 100% required, we can help you to analyse your fixed costs and expenses and determine whether any of them can be reduced or removed entirely. 
 
Whilst certain costs such as commercial rent and wages are a given, there may be other outgoings that are no longer necessary. For instance, it could be that your business is subscribed to a particular piece of software or app that you don’t use anymore, or there may be suppliers who can offer you a better deal on things like printing, stationery and staff room supplies. Our role is to help you study your expenses and work out where better budgeting can be applied, which frees up money to either save up or use on business-critical goods and services. 

Remember that some cash isn’t yours 

We’ve mentioned this before but here’s a quick reminder: Some of the cash in your business bank account isn’t yours, as it will be owed either to creditors, staff or the taxman at some point in the future. Cash flow forecasts take this into account and give you a clear figure that shows how well your business is performing and what can be done to improve your financial position even further. 

Cash flow forecasts covering 6-12 months 

If you like the idea of professional cash flow forecasts that will help you to run a more productive and profitable business, call our Northern office on 01482 235575, our London office on 0207 885 0605 or fill in the contact form below. 
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