THE IMPORTANCE OF CASH FLOW
Cash flow is crucial for any business. Even if a business is profitable, it can still fail if there isn’t enough cash available to meet immediate needs. Cash primarily enters a business through sales and exits through expenses such as materials, labor, transportation, and utilities.
If your cash inflows exceed your outflows, you’ll have positive cash flow and be able to pay your bills on time. However, if your outflows exceed your inflows in the short term, you may struggle to meet your obligations and may need to borrow money to cover the gap. If this becomes a long-term issue, your business may no longer be sustainable.
Our team is here to ensure your business has sound financial management and the foresight to plan for unforeseen circumstances.
Monitoring Cash Flow
We can inform you about the ups and downs in your cash flow, comparing actual results with budgeted performance. We can also alert you if any banking agreements are at risk of being breached, allowing the business to take prompt corrective measures.
A profitable year may lead to a substantial corporation tax bill. We can include such payments in the cash flow projection for the next year and engage our tax advisory team to explore ways to minimize the tax liability.
Reducing Cash Flow Risk
As a business expands, cash flow demands increase due to inventory and outstanding payments. This is known as & overtrading & and poses a risk to cash flow management, especially for businesses expanding rapidly after a recessionary period.
Regular advice and recommendations from our team of experts will help you control the risk and maximize returns for your business.
MANAGING YOUR CASH FLOW
We are here to assist you in predicting, overseeing, and handling your business& cash flow.
Financial Forecasting
While business owners have a general understanding of their business, not all regularly update their financial forecasts.
Our team of experts can help you maintain control by providing regular cash flow projections based on rolling forecasts for the next one, two, or three years.
How We Can Assist
We can support you with various forecasting needs. Here are some key areas where we currently help our clients. Click on each option to learn more.