Have I got enough money to …?

Four out of the top five reasons for a business failing is that they haven’t done the back office work on the numbers and preparing a working cashflow is one of those important tasks.

A cashflow forecast is essentially a prediction of how much money there will be in the business bank account at any point in time and they are usually prepared on a monthly basis for a year in advance  

When looking at preparing your first cashflow I have a few tips for you to consider

  1. A cashflow needs to be realistic
  2. Consider the timing of payments and receipts
  3. Include a contingency
  4. Take account of seasonality
  5. Use current knowledge to predict cashflow
  6. Fixed assets and large purchases 
  7. Include what you need to take out of the business to live on

Finally a cashflow forecast is not a document that is done, finished and filled away. It is a working document that should be reviewed at least every month and more often if something changes that will have an impact on the cashflow of the business.

We all have at least one business in us and my free guide will help you work out what yours is. It is a tried and tested process and the exact one that I go through with my clients.

To download it, go to the monthly financial routine guide page

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