Cash flow management

Financial forecasting keeping you

ahead of the competition

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  • Rolling Cash flow forecasts
  • Produce P&L and Balance sheet reports
  • Provide Cash flow statement reports
  • Identify early cashflow warning signs
Cashflow Management

What is a cash flow forecast?

A cash flow forecast enables small business owners to track how much money is coming in and going out and predict future cash movements over a period of time. The report helps you understand your business in more detail, spot trends, and plan for any future borrowing requirements.

It will also help you understand in more detail the impact of your sales, purchases, and other day to day business costs (however small) on your bank balance.

Practised regularly, cash flow management helps you understand how much money is currently in the business so you can keep the lights on.

What is a flow forecast
Preparing a three-way cashflow forecast

Preparing a three-way cash flow forecast

Profit and loss, balance sheet, and cash flow data are all brought together in three-way forecasting. This data combines your assets and expenses to create a complete picture of your cash flow numbers. This allows you to create financial forecasts that explain the prospects of your business model - exactly what any bank or investor will be looking for if you need financial assistance. .

So, how does cash flow interact with your profit and loss statement and balance sheet, and how can you get the most out of your financial forecasting and future planning by combining all three reports?

Understanding your profit & loss (P&L)

Your profit and loss statement (P&L) displays the revenue, costs, and expenses that come in and go out over a given period. It is a report that tells you whether or not your company is profitable. However, how will you know how much cash you have available at any given time if your company sells multiple products with varying turnaround times? Wages, payroll, VAT, corporation tax payments, and other overheads may soon complicate the situation!

Understanding your Profit & Loss (P&L)
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Speak to our specialist cash flow management Accountant.

What is my balance sheet cashflow forecast

What is my balance sheet telling me?

It reflects your assets, liabilities and equity at a given point in time. In essence, it is a snapshot of what your business owns, what it owes, as well as the amount invested by its owners, reported on a single day. A balance sheet will tell you what your business is worth at a given time.

Monitoring cash flow keeps you ahead of the game

We can advise you of the peaks and troughs in your cash flow. By mapping out your expected cash movements of each business element, we can help you plan for the future.

Example: A good year’s results may lead to a higher-than-expected corporation tax bill.

We can include payments in the cash flow projection for the following year. Our tax advisory team will also look at ways to minimise your tax bill.

Monitoring cash flow keeps you ahead of the game
Reducing cashflow risk during business expanse

Reducing cash flow risk during business expansion

Any expanding business will have greater demands on cash flow as more and more cash is tied up in stock and debtors. This is technically called 'overtrading' and presents a cashflow management risk to many businesses, especially those that expand quickly after a recession period. We can provide advice and make recommendations that will allow you to control the risk as you maximise the returns to your business.

 

Why cash flow management is important
– an example

Why cash flow management is important

Why choose us?

 

We can provide an accurate and comprehensive cash flow forecast to secure your future or support funding/loan applications.

We have the experience, accreditation, and know-how to help our clients’ businesses. Our experts will sit down and discuss ways to save money and free up cash flow. As a result, we can improve your company’s efficiency and profitability and make you more appealing to investors.

Combined with our extensive 30-year experience, we can spot early cash flow issues and recommend solutions.

Our service includes:

  • Cash flow forecasts – a rolling cycle to optimise cash
  • Adjustments to regulate cash flow
  • Set financial targets
  • Adjusted cash flow forecasts
  • Forecast profit levels and cash flow requirements for management and other sources of finance
  • P&L and Balance sheet reports
  • Cash flow statement reports
  • Stock management
why choose us cash flow

Our accounting software partners
that will grow your business

quickbooks circle

Simple, smart accounting software and expert support.

  • Manage your expenses.
  • Power through payroll.
  • Bring in your bank data.
  • Stay on top of taxes.
xero circle

Accounting software for a healthy business.

  • Real time snapshot of your finances.
  • Claim expenses.
  • Quotes and invoices on the go.
  • Submit VAT returns online.
freeagent circle

The whole package for small businesses:

  • Master your cashflow.
  • Record expenses and mileage.
  • Send invoices and payment reminders.
  • Quick access to financial reports.
dext circle

Profitable and powerful with better data and insights.

  • Increase productivity.
  • 50% more client capacity.
  • Stay on top of business finances.
  • Capture, upload and track your cashflow.

FAQ 's

Put Cash Flow over Profit. But actually, it is all about how you manage your cash flow. Always check your earnings against your break-even point. If you are earning more than that yet money still feels tight, you probably have an issue with your accounts payable, accounts receivable or shortfalls.

The cash inflows received through short-term bank loans and the cash outflows used to repay the principal amount of short-term bank loans are reported in the financing activities section of the statement of cash flows.

  • Conduct a regular cash flow analysis
  • Deal with late payments
  • Set up automated payment reminders
  • Understand your working capital
A skilled accountant is one of the best cash flow management solutions for small businesses. You can use an accountant to analyse your cash flow and find strategies to cut costs. An accountant will also verify that all tax responsibilities are met and that you are tax efficient.

Businesses use cash flow management software to maintain a positive cash flow as well as forecast future cash flow based on past transactions and historical financial or operational data. Xero, QuickBooks and FreeAgent are three of the market leaders, who we are accredited Pro Partners/Advisors with.

There are a number of apps you can use which give crucial cash flow insights in real-time so you can make more confident decisions about the future of your business. These include Futrli, Float and Fluidly.

This is, by far, the most important reason for a cash flow forecast. Make sure that the business can afford to pay suppliers and employees. Spot problems with customer payments—preparing the forecast encourages the business to look at how quickly customers are paying their debts.

The cash flow forecast predicts the net cash flows of the business over a future period. A business uses a cash flow forecast to: Identify potential shortfalls in cash balances – for example, if the forecast shows a negative cash balance then the business needs to ensure it has a sufficient bank overdraft facility.

A three-way cash flow forecast combines all three key financial reports into one consolidated forecast. It links your P&L, balance sheet and cash flow together so you can forecast your future cash position and financial health.

What our clients are saying about our service

We are customer-focused, continually developing products and services to meet our customers’ needs. We are pleased to say that is reflected in the high number of new business enquiries we receive through recommendations.

We are delighted so many clients have wanted to share their thoughts about our service – why not leaf through over 150 reviews on Google before making up your mind to join us as a client - we would be delighted to welcome you!

Campbell Allan

Customer service reviews

Fusion Accountants helped me with setting up my company and they're very quick in sending relevant information via emails/posts, the staff are knowledgeable and understands your query's very well. I definitely recommends Fusion accountants to all the contractors and businesses.

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