Cash Flow Forecasts

Cash flow forecasting enables you to predict peaks and troughs in your cash balance. It helps you to plan borrowing and tells you how much cash surplus you’re expected to have at any given time. Many lending institutions will request a forecast before, for example, considering a loan.

With effective cash flow planning, you can determine the following:

  • When there is likely to be a negative cash flow – if the cash flow plan indicates that this will happen, you should arrange suitable finance in advance to cover the shortfall
  • When there may be a positive cash flow – if the cash flow plan indicates that this will happen, then you can plan in advance the best way to invest this surplus

The more accurately you can calculate your cash flow forecast, the more beneficial it will be in helping you to predict the future position of your business.

Seaman Herbert & Co can help you by preparing cash flows on a weekly, monthly or quarterly basis and then evaluate the forecasts with actual data to inform your decision making. For example, you may be allowing your credit customers too lengthy a credit period, which is putting a strain on the overdraft, or you may be paying your suppliers too quickly and failing to take advantage of credit periods available.

By analysing your data over time, we can properly guide you in your business decision making. If required, we can also educate individuals in your organisation in how to produce this management data, so that any decision can be made in the most timely manner.

If you would like further information regarding this service, please don’t hesitate to contact us.