Still don’t have a cash flow forecast? Read about how a meticulously planned cash flow forecast can help you highlight impending problems, follow cash flow trends, operate in a weak economy, impress investors and plan for future business growth.
Are you using your bank balance to manage your company’s cash flow? If yes, please don’t, as your bank balance may not be the best tool when it comes to managing your cash flow. A bank balance only tells you how much you have in the bank. It will not tell you how much your business owns to creditors and vendors. Why not do your enterprise a favor and manage your cash flow with a forward thinking cash flow forecast.
- Learn about cash flow trends and patterns
With a cash flow forecast that is reviewed and reconciled on a regular basis, you can learn about the trends and patterns impacting your cash flow cycle. These trends and patterns will reflect the ebbs and flows of your business’s cash flow cycle. You can also comprehend why some months the cash flow is negative, while others are cash flow positive. By taking the time to understand these trends, you can manage your cash flow in a better manner and plan in advance for tight months.