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Cashflow Forecasting: Get Back in Control

Cashflow Forecasting: Get Back in Control

We all know that positive cashflow is the beating heart of any successful business. And with so many external pressures on your cash right now, it’s important to have one eye on the future. Cashflow forecasting is an increasingly important tool for any finance team. You can make well-informed financial decisions with a better view of your future cashflow position.

But how does cashflow forecasting work? And how does it help you maintain a positive cashflow position throughout the year?

What does a cashflow forecast tell you?

The cashflow process is all about balancing your income (cash inflows) against your expenditure (cash outflows). This is called a ‘positive cashflow position’, if your cash inflows exceed your cash outflows. In other words, you have cash left over, even once you’ve covered your costs and paid your bills – cash that can then be reinvested in the business.

Forecasting apps like Float, Fathom, and Futrli use historic cash data to project your cash position forward in time. This helps you see where your cash may be in future periods.

Running detailed cashflow forecasts means you can:
  • Understand your future operational cashflow – helping you spot any cashflow holes, seasonal dips, or predicted months of high expenditure before they become an issue.
  • Plan your costs and expenditure effectively – allowing you to stick to your planned budgets, manage your expenses and plan for any steep price increases.
  • Avoid the cashflow issues before they happen – using your forecasts to look ahead, plan and get tighter control over your cashflow management.
Talk to us about setting up cashflow forecasts

Staying in a positive cashflow position is challenging in the current economic situation.

When supplier prices and operational costs fluctuate, and revenues are hard to predict, it is difficult to juggle your inflows against your outflows.

We’ll help you get a tighter grip on your cashflow. Setting up detailed forecasts enables you to understand your financial story and puts you back in complete control of your cashflow.